Located in the sixth-largest economy globally, India has a huge food industry. About 70% of this segment’s sales come from retail startups.
Among the fastest-growing industries in India is the FoodTech industry. In all its aspects, the Indian foodtech sector aims to increase its efficiency and sustainability by leveraging technology to its core.
Given its nationwide reach and surge in consumer confidence, there are new opportunities for players to ‘win with customers in an evolving market.
Technologies like Big Data and the Internet of Things (IoT) enable foodtech players to enhance productivity and sustainability in food production, assembly, delivery, and consumption.
The Indian foodtech sector has several successful startups currently operating and some upcoming and promising ones. Several food-tech verticals are increasing with the success of on-demand meals, personal chefs, and grocery and food delivery services.
These are some of India’s most successful foodtech startups outlined in this post.
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Zomato
Founders: Deepinder Goyal and Pankaj Chaddah
Founded in: 2008
Location: Gurugram
Funding received: US$673 Million
The Gurgaon-based Zomato platform allows users to find restaurants, order, pick up, and reserve tables from mobile apps. Pankaj Chaddah and Deepinder Goyal founded Zomato in 2008. Currently, it operates in 24 countries across the world. It is an Indian restaurant search and discovery service. Users can upload pictures of the menu items they order or an outlet’s photo and information and reviews on the app and website.
Restaurants may also create their apps with customized features and integrate with Zomato’s ‘order and analytics’ support via the white-label platform that Zomato offers. In addition to Glade Brook Capital, Ant Financial, and VY Capital, the startup has received about $673 million funding. Also, its popularity during the flu season was surprising.
- Swiggy
Founders: Sriharsha Majety, Nandan Reddy, and Rahul Jaimini
Founded in: 2014
Location: Bengaluru
Funding received: US$1.47 Billion
Swiggy offers food services solutions to restaurants through its food ordering and delivery platform. Founded in 2014 by Sriharsha Majety, Nandan Reddy, and Rahul Jaimini, Swiggy is a food and online shopping marketplace.
Swiggy’s CEO is Vivek Bhatia. Restaurant food and desserts are delivered to its customers in less than 40 minutes. The company uses an app that runs on routing algorithms to route its delivery agents to customers.
It also provides real-time tracking of orders to its customers. Swiggy used to deliver for free when it began. Swiggy’s delivery charge today is Rs. 30 (on average), but the service also offers free shipping on orders over Rs. 250.
There are more than 5000 employees on the Swiggy platform, and they operate in eight cities. There are more than 9000 restaurants listed on the platform as well. Naspers, DST Global, and Tencent have invested $1.47 billion in the startup. It aims to stand out among its competitors with a curated list of restaurants and services and a fleet of in-house delivery vehicles.
- FreshMenu
Founder: Rashmi Daga
Founded in: 2014
Location: Bengaluru
Funding received: US$24 Million
FreshMenu is a restaurant in Bangalore that offers neighbourhood food delivery using cloud technology. The restaurant specializes in oriental, continental, Italian, Mughlai, and other cuisines. Thanks to the startup’s daily changing menu, fresh meals are delivered to customers’ doorsteps in 45 minutes; the company owns a delivery fleet and kitchens throughout the city.
The fresh vegetables, fresh dairy products, and meats that FreshMenu uses in their meals are sourced from local farms. On average, it serves about 12000 orders per day at the cost of INR 320 per order. Rashmi Daga, the founder of FreshMenu, also founded the startup. Lightspeed Venture Partners and GrowthStory Investments have invested $24 million in the startup.
- Faasos
Founders: Jaydeep Barman and Kallol Banerjee
Founded in: 2011
Location: Pune
Funding received: US$80 Million
Faasos Food Services Pvt. is a food-on-demand startup based in Pune. Founded in 2011 by Jaydeep Barman and Kallol Banerjee, Faasos focuses on the inhalant industry. Customers can order food on its mobile app and website, and it currently operates in 16 Indian cities. Faasos aggregates restaurants from different chains and individual restaurants to provide a wide range of foods to customers. Despite scaling and sustainability problems, it has managed to strike a balance.
Daily, Faasos processes roughly 18000 orders. Kettle & Eggs, Ovenstory, and Behrouz Biriyani, are some of the companies’ brands. There have been investments of $80 million from Altia Capital, Sistema Asia Capital, Evolvence India, etc.
- Box8
Founders: Anshul Gupta and Amit Raj
Founded in: 2011
Location: Mumbai
Funding received: US$12 Million
Box8 is a chain of quick-service restaurants based in Mumbai. User(s) can browse Box8’s website and place orders to have items delivered to their homes online. There is an Android and iOS app for the service.
To increase market penetration, build a seamless customer experience across its mobile and website platforms, and make the technology company raised $12 million that it will use to build technology, expand its team, and develop a seamless customer experience. Current locations include Mumbai, Pune, Bangalore, and Gurgaon.
- HungerBox
Founders: Sandipan Mitra
Founded in: 2016
Location: Bengaluru
Funding received: US$16.5 Million
HungerBox is India’s leading institutional FoodTech Company. Founded in 2016 by industry veterans Sandipan Mitra and Uttam Kumar, HungerBox manages the end-to-end F&B requirements of nearly 160 institutions in the Technology, Financial Services, Education, Manufacturing, and Healthcare sectors.
Since inception, HungerBox has processed more than 200 million food orders across 565 institutional café’s across 18 Indian cities, with annual gross food value of INR 750 Cr.
The company has raised $16.5 million in funding from investors including Paytm, Sabre Partners, Lionrock Capital, Neoplux, NPTK and Kris Gopalakrishnan, Co-Founder, Infosys.
HungerBox’s offering pivots on its proprietary technology platform, in-depth food operations expertise, a curated food partner network, and stringent food safety protocols.
The relevance of the HungerBox value proposition has been enhanced in the pandemic era as institutions reopen their campuses and prioritize cafe and workplace digitalization. Besides its F&B digitalization offering, HungerBox’s product extension into workplace safety and automation have resulted in increased client traction. Eight of the top 10 largest private sector employers in India, leading automobile manufacturers, hospitals, universities, tech parks, and multiplexes are among HungerBox clients.
In line with its role as a responsible business, HungerBox and its partners served more than 50 lakh meals free-of-cost to the underprivileged during the pandemic-induced lockdowns in India.
- Cure.fit
Founder: Mukesh Bansal
Founded in: 2016
Location: Bengaluru
Funding received: US$170 Million
Mukesh Bansal founded Cure.fit in 2016 in Bangalore. He also founded Myntra. Fitness, nutrition, and mental well-being are all aspects of fitness, nutrition, and Cure.fit’s offerings. The company wants to make fitness easy and enjoyable. In addition to offering various offerings, Cure.fit focuses on preventative healthcare.
Eat.fit is a brand of fresh and tailor-made salads offered by Cure.fit. In addition to providing low-carb, high-protein, and green vegetables home-delivered, it also provides fresh and homely meals. Healthy menu options include Indian cuisine, fusion meals, salads, and snacks. Kalaari Capital, Aceel Partners, and Oaktree Capital Management have invested $170 million in Cure.fit. The brand ambassador of Cure.fit is Hrithik Roshan.
- MagicPin
Founders: Anshoo Sharma and Brij Bhushan
Founded in: 2015
Location: Gurugram
Funding received: US$30 Million
MagicPin offers coupons. Customers receive rewards and cashback. Founded by Anshoo Sharma and Brij Bhushan in 2015, the company is based in Bangalore. With its presence in 16 Indian cities, such as Delhi, Hyderabad, Chennai, and Pune, MagicPin offers services to a wide range of users. A platform like this drives Rs. 30 crores in sales for food and beverage (F&B) chains like KFC and Hard Rock Café, supported by 1.4 million users. Other segments being explored by MagicPin include groceries and beauty & wellness.
The MagicPin app lets diners earn cashback with a photo of the bill and a selfie taken with the meal at a restaurant that partners with the MagicPin app. MagicPin’s live feed-style timeline interface displays user check-ins, recommendations, and reviews to increase user engagement. Restaurants can also use the platform to post surveys and advertisements.
- Swadhika Foods
Founder: Swarnamugi R Karthik
Founded in: 2015
Food processing startup Swadhika Foods is based in Chennai, India. Frozen fruits and vegetables, as well as frozen ready-to-eat foods, are the company’s main products. Besides APEDA, the USFDA, FSSAI, ISO, BRC, and HACCP certifications, Swadhika Foods is also certified by the USFDA, the US Food and Drug Administration, and even the European Union. To ensure a reliable source, produce, and product, Swadhika Foods has a network of the best partners.
- EAZYDINER
Founder: Vir Sanghvi
Founding Year: 2014
Location: New Delhi
Funding received: US$14.6 Million
A startup called EasyDiner provides services for finding restaurants and booking tables. By downloading the app or visiting the website, you can book more than 10,000 restaurants in Delhi, NCR, Mumbai, Bengaluru, Pune, Chennai, Kolkata, Goa, Ahmedabad, Jaipur, Hyderabad, Chandigarh, and over 150 other cities in India. Dubai also has EazyDiner.
The booking process with EazyDiner offers exclusive deals such as a complimentary dessert or drink or a discount on the entire bill as a thank you for booking. By booking through EazyDiner, customers are eligible to earn Eazy points, which they can redeem as they see fit. EazyDiner makes eating out easy and hassle-free.
Cloud Kitchen
A massive rise in Cloud Kitchens has been attributed to changing consumer behaviour. Compared to conventional dine-in restaurants, cloud kitchens offer more growth opportunities for entrepreneurs. 87% of the market for cloud kitchens remains untapped, according to Inc42 research. This indicates growth potential for this market segment.
The cloud kitchen sector is predicted to reach $1.05 Billion by 2023, and startups like Faasos, CureFit, Twigly, and BOX8 dominate.
Rise Of D2C Brands:
Business ecosystems have been forced to adapt and innovate due to COVID-19-led restrictions. Several startups saw gains in customers, which led to growth.
The public is showing great interest in packed food items and ready-to-eat meals offered by foodtech startups, so this is your best chance to grow your brand.
DIY projects and Direct to Customers (D2C) companies can greatly benefit from this current situation by expanding their direct delivery expertise to the doorstep of their customers.
Govt Initiatives (PM SVANidhi Scheme):
To support the growth of this sector, the Indian government constantly puts forth its best efforts.
Prime Minister Modi’s leadership focuses on bringing street vendors to the forefront and growing their business.
Several street vendors have signed agreements with food-tech giants like Swiggy and Zomato, according to the Prime Minister Street Vendors Self-Trust Fund and the Ministry of Urban Development. Increasing street vendors’ sales will empower the food-tech industry by empowering the backbone of its economy.
Future Outlook:
The food-tech industry seems to be in a favourable position, with increased internet penetration, expanding reach at small tiers, and an expanding network of restaurants through food-tech platforms throughout the country.
Foodtech giants like Swiggy and Zomato will pose a greater threat than ever to the small players. New or aspiring entrepreneurs need to keep up with the innovation and creation curve to stay competitive.
As people invest in new food experiences, technology-led innovations will influence their spending. The Indian foodtech sector is expected to continue to attract more consumers in the future, thanks to a favourable consumer disposition and an increase in ordering frequency.
Conclusion
People are becoming more and more health-conscious, which has boosted the food-tech industry’s growth and evolution at the same time. The number of food-tech companies in India is likely to grow dramatically in the coming years.
Frequently Asked Questions – FAQs
A food startup: How do you get started?
Your first step should be to create a solid business plan that includes thorough research! Get to know your competitors as much as possible. Once you have enough funds, to begin with, you’ll need to make sure you can survive for a while. A food-tech company requires an app, and a restaurant company requires a location and furnishings. You’ll also need the appropriate licenses and permits. Get your business advertised by hiring a team or selecting a logistics partner! Best of luck!
Is it possible to sell food from home?
The best options are those that take a long time to spoil. By making jam, sauces, tea mixes, cake mixes, cookie mixes, and alike, you will have less food waste in the long run.
Which Indian food tech startups are famous?
Food tech startups such as Zomato and Swiggy are an absolute must in India. To name a few, there is Faasos, Box8, Magicpin, and HungerBox.
Located in the sixth-largest economy globally, India has a huge food industry. About 70% of this segment’s sales come from retail startups.
Among the fastest-growing industries in India is the FoodTech industry. In all its aspects, the Indian foodtech sector aims to increase its efficiency and sustainability by leveraging technology to its core.
Given its nationwide reach and surge in consumer confidence, there are new opportunities for players to ‘win with customers in an evolving market.
Technologies like Big Data and the Internet of Things (IoT) enable foodtech players to enhance productivity and sustainability in food production, assembly, delivery, and consumption.
edited and proofread by: nikita sharma
