Foodtech startups have revolutionised the way Indians eat.
Rising internet penetration, increasing ordering frequency, extending reach in smaller cities, and the addition of more restaurants on foodtech platforms pan-India have contributed to the factors driving growth in the Indian foodtech industry.
According to a report by Google and Boston Consulting Group (BCG), the Indian foodtech sector is set to grow at a compounded annual growth rate (CAGR) of 25 to 30 percent to $8 billion by the end of 2022.
During the nationwide lockdown, with nearly 90 percent of restaurants having to shut down, diners switched to takeaway options, leading to a shift towards cloud kitchens.
RedSeer Management Consulting, in a recent report, said cloud kitchens were set to become a $2 billion industry in India by 2024, up from $400 million in 2019. In fact, it called cloud kitchens the “secret sauce to survive in the post-COVID restaurant market.”
Riding this wave, many foodtech players secured funding from leading VCs to help expand their operations. According to data accessed by YourStory, the Delhi-NCR-based foodtech startups have bagged the maximum number of deals, amounting to $258,968,498 in equity funding.
Here are a few Delhi-NCR-based foodtech startups who managed to raise funding amidst pandemic.
This year, Gurugram-based Zomato closed four rounds of funding, securing its latest round of $100 million in September from Internet Fund VI Pte Holdings.
With the latest fundraise, Zomato, which hosts several cloud kitchens on its platform, is now reported to be valued at $3.4 billion, close to its rival Swiggy, which is presently valued at $3.6 billion.
The latest round comes immediately after a week Zomato raised $62 million from Singapore-based Temasek. Earlier, in January, it had raised $150 million as a part of a fresh fundraise from its existing investor Ant Financial. Further, in April, it bagged around $5 million (or about Rs 38 crore) from Pacific Horizon Investment Trust PLC in its Series J round.
According to media reports, Zomato is also eyeing an Initial Public Offering (IPO) in 2021.
Cloud Kitchen Hoi Foods, in May 2020, raised $2 million in a Pre-Series A funding round led by 1Crowd. The cloud kitchen startup also saw participation from Sprout, Angelist, Samar Singla (Founder of Jugnu), Jaideep Mehta (CEO of VCCircle), Mukund Kulashekaran (SVP of Business at UrbanClap), and others.
Hoi Foods will use the funds to enhance its existing network of cloud kitchens, and catapult the startup into the big league of the cloud kitchen ecosystem.
Founded in April 2017 by Indrajeet Roy (Co-founder) and Pawan Raj Kumar (Co-founder and prime investor), Hoi Foods has over 150 active cloud kitchens, serving close to 5,000 meals in a day across Delhi-NCR and Bengaluru.
Biryani By Kilo
According to media reports, in April 2020, cloud kitchen startup Biryani By Kilo raised Rs 6 crore from a clutch of angel investors in its Series B funding round.
Founded in 2015 by Kaushik Roy and Vishal Jindal, Gurugram-headquartered Biryani By Kilo was launched as a premium biryani brand. Since its inception, the startup has grown significantly in terms of revenue, clocking Rs 48 crore in FY20.
It has around 40 outlets in 20 cities with about Rs 70-80 crore in ARR for FY21.
Daalchini, an IoT-enabled physical and digital vending machines startup, raised Rs 5 crore in a Pre-Series A round led by Artha Venture Fund (AVF) in August.
Angel investors, including Ajay Kaul, former CEO of Jubilant Foodworks; Ashutosh Valani and Priyank Shah, Co-founders of Beardo; Vaibhav Karnavat; Amit Lakhotia; and others also participated in the round.
The foodtech startup said it will use the funds to expand its footprint across all metros, and increase its product portfolio.
Founded by former Paytm employees Prerna Kalra and Vidya Bhushan in 2017, Daalchini is a digital vending machine startup that aggregates healthy and affordable home-cooked meals through a network of smart vending machines deployed across Delhi, Chandigarh, Mumbai, and Pune.
The startup claims that it is bridging the gap of supply and demand unaddressed by providing a variety of cooked meals for under Rs 50, but 40 minutes faster than any other food delivery app.
In April, cloud kitchen startup Kitchens Centre raised $500,000 in its seed round of funding led by AngelList India.
Investors like Utsav Somani (Partner, AngelList India), Jake Zeller (Partner, AngelList), Jonathon Swanson (Co-founder, Thumbtack), Ankush Gera (Founder, Junglee Games), and Revant Bhate (Co-founder, Mosaic Wellness) also participated in the round.
Founded in 2019 by Lakshay Jain, Kitchens Centre claims to provide ready-to-move-in, fully-equipped, and compliant kitchens along with the essential technology to delivery-only (cloud kitchen) restaurants. It has centres across north India, with brands like BTW, WOW! Momo, Asian Haus, Burgrill, 34 Chowringhee Lane, Wok Me, POMP, and Beijing Street already on board.
Kitchens Centre said it plans to use the investment raised to drive aggressive expansion into new geographies to enable hyperlocal delivery.
Edited by Suman Singh
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