Swiggy rewards employees with a ESOP liquidity program of up to $9 million

https://www.financialexpress.com/industry/sme/swiggy-rewards-employees-for-helping-it-recover-from-covid-offers-7-9m-esop-liquidity-programme/2124385/Foodtech major Swiggy has started a liquidation program which will let employees exercise their employee stock ownership plan (ESOP). This is the second such liquidity event at the company and they are hoping to see participation from the family offices of leading industrial houses and a few individuals.

Over 40% of their past and present employees with ESOP benefits will be eligible to exercise their stocks. Swiggy says some of them will be able to liquidate their ESOPs at as much as 3x premium of the allotted price.

Do not order lunch from delivery apps, Chennai school to parents

A Chennai based school has issued circular to parents of it’s students to detest from ordering lunch for their kids through delivery apps. 

The school has a lot of concern over students safety as well as the nutritional quality of food which they eat.

“We have uniforms and other rules to ensure that every student if equal and there is parity. If we allow food delivery apps, there will be some students whose parents will not allow them to eat this food, there will be some who cannot afford every day and there will be students who will have easier access to app-based foods. This may create discrepancies which we want to avoid.”

#IndianStartupData : Foodpanda Records Revenue Of INR 4.7 Cr, INR 36 Cr Loss In FY 14-15

[Editor Notes : Nothing is as powerful as data and these articles are part of our coverage of #IndianStartupData – i.e. an overview of financial performance of selected Indian startups with a hope that it gives you a good picture of the companies and the ecosystem in general.
Our Mission : A PR-less startup ecosystem which thrives on great products and services!

Foodpanda is not an Indian startup – but definitely an important player in food space.]
indianstartupdata

Foodpanda (Pisces eServices Private Limited) has reported its latest revenue figures for FY 14-15.

The company earned a revenue of INR 4.7 crores in FY 14-15 compared to INR 69 lacs the previous fiscal (580% growth in revenues). The losses grew 5 times from INR 7 crores to INR 36 crores in the same period.

Foodpanda India : Financial Performance

The revenue from operations stood at INR 4.6 crores. This includes ‘Commission from restaurants (98%), ‘Income from Marketing’ (1.1%) and ‘Income from Registration’ (0.9%). Following chart depicts their year on year Revenue from PAT since inception.

Image1

The expenses for the company were INR 41 crores in FY 15 (INR 7.7 crores in FY 14). The loss for the year stood at INR 36 crores, whereas the accumulated losses over the three year stood at INR 47 crores. The accumulated losses have eroded the net worth of the company. The net worth as on 31st March, 2015 was a negative of 2.7 crore rupees.

After March 2015, the parent company has infused around INR 66 crores of funds in the company.

  • The major expense for the company was ‘TV and Radio Advertisementexpense, which stood at INR 18 crores (44% of the total expenses). This particular expense and a lot of other apparent discrepancies were discussed in detail in this article by Mint.
  • Other major expenses were ‘Discount Voucher’ expense at INR 8.3 crores (20% of expenses) and employee expenses at INR 6.4 crores (16% of expenses). Following is a breakup of the expenses.

Image2

Interestingly, by the financial year end, Foodpanda identified some of the much talked about “certain case of restaurants which were non-existing or which were misusing the company’s discount vouchers by generating fake orders” (as mentioned in their Auditor’s report).

The company puts the loss due to these frauds at INR 7.6 lacs and calls it “not material in comparison to the scale of operation of the company”. This loss is shown under the expense head of ‘Discount Voucher’.

The FoodTech scenario in India

The following graph benchmarks Foodpanda revenue and losses against some of its major competitors in the food tech industry.

Image3

While Faaso’s (2010) and Zomato (2010) have been around for more than 5 years, Foodpanda (2012), TinyOwl (2014), Swiggy (2013) are relatively newer players. Foodpanda claims to be present in 100+ cities compared to Zomato in 10,000 cities (across 23 countries, however, primarily it is a restaurant discovery platform), Faaso’s in 10 cities, Swiggy in 8 cities and TinyOwl in 6 cities.

Food-tech has been a heavily funded sector so far and almost all key players have raised multiple rounds of funding. Following chart illustrates the funding of key players in the sector so far.

Image4

Of late, Foodpanda has been delving into several new service offerings such as Corporate Food ordering service and food delivery on trains with irctc. Zomato launched its food ordering app this year, which directly competes with Foodpanda’s business. However, Zomato has an edge over its competition due of its long presence and a deep penetration in the market through its restaurant listing business. Competing with Zomato and other upcoming players and apparently having a lot to fix at home, Foodpanda seems to be in for a tough ride ahead.

Also see: TinyOwl Revenue For FY14-15.

[About the author: Vishal and Anchal form the team that runs the Tofler blog. They like to explore and track companies, their performance and senior management. Tofler (tofler.in) is a Business Research Platform.]

Foodtech Startup, Eatlo Has Shutdown [?]

The foodtech startup Eatlo, has shut down. The startup has not been accepting any orders since yesterday and the site (and app) clearly shows that it is not operational*.

Eatlo was founded in 2014 by Sai Priya Mahajan and Rahul Harishanka.

Eatlo Has Shutdown
Eatlo Has Shutdown ??

The Bangalore based company had raised a second round of angel funding from Powai Lake Ventures, Abhishek Goyal of Tracxn Labs, and Globevestor in June. The previous investors included Haresh Chawla, Abhishek Goyal and others.

Eatlo’s team comprised of 100 people, of which 60 were delivery boys and others included from operations, marketing and tech departments.

Series A in Foodtech has been a concern and earlier, Dazo had shut down (+ Spoonjoy).

[Hat tip: Jagan]

*NextBigWhat team has reached out to the founders and is awaiting response.

Eatfresh Secures Funding From Kalaari Capital, Plans To Expand Delivery Network In Bangalore & Chennai

Company Name : Eatfresh
Funding Amount : Not Disclosed
Investor(s) Kalaari Capital


Eatfresh is a part of Ubiquitous Foods, which operates the bakery retail chain Ovenfresh in 50 locations serving 10,000 customers every day.

The funds from this round of investment will be used towards expansion of the Eatfresh delivery network to Bangalore and Chennai, with further cities to be added in 2016.

Eatfresh which was launched in August 2015, provides an online platform for high-rajiv-subramanian-founder-eatfquality, chef-made meals. With a menu that changes daily and is prepared fresh by 5-star Chefs, Eatfresh offers its customers a choice of Indian, European, Mediterranean and Oriental cuisines.

The startup has differentiated itself from other food tech players through a deep integration of technology and infrastructure for the Chefs on its platform.

Top professional and experienced Chefs are carefully curated and selected, and exclusively work in commercial kitchen infrastructure provided by Eatfresh.

“This full-stack business model at Eatfresh ensures high product quality and service levels while generating unit gross margins in excess of 50%.”

What Consumers Expect From A Food Delivery App?

Zomato is cutting 300 jobs. Dazo has shut down. Tinyowl is laying off employees. Spoonjoy is scaling back operations.

It doesn’t seem like a good time for food delivery apps (I am purposely staying away from the much debated term, “food tech”).

As someone who has spent tens of thousands of rupees over the past few months across most of the major food delivery apps as a regular customer, I hope this post helps these companies get a glimpse into what a regular customer expects while using such apps.ID Special Foods

#1: Less is more. Consider the paradox of choice

Whenever I open Swiggy, I spend around 20 minutes trying to figure out what to order. Sometimes, the sheer volume of options gets overwhelming and I end up choosing to go out and eat from a nearby restaurant.

The beauty of Dazo when they launched (earlier Tapcibo) was that they had curated meals. It didn’t take me much time to order food. In fact, I was so happy with the curated selection, I converted almost the entire office to Dazo users. It became the default app for ordering food in our office.

However, Dazo started losing its curation focus and started adding more food choices. Last time I checked before it shut down, it had gone from curated 4 or 5 meals to at least 75 options across three different tabs.

Less is more.

Give us a curated choice of food. Maybe ask some questions about our food preferences while setting up the app and show recommendations based on that. For e.g. I always order rice and some non-veg curry. If the app knew that, it could help me significantly reduce the mental strain of choosing what to eat.

#2: Delivery time matters – especially during lunch

The sooner you can deliver lunch, the better it is. Most of the time, we end up ordering when we feel hungry. So making sure that the delivery is fast is very important.

Delivery in under 30 minutes is great. 45 minutes is acceptable. 1 hour or more is going to be a stretch.

#3: Use GPS location instead of having to explain the route

Being in Bangalore, it’s sometimes difficult to navigate people to our place, especially if you don’t live in one of those fancy apartments. This becomes all the more difficult if you can’t speak the local language.

Unless the delivery boy has come to my place several times, I receive a call from them every time I place an order asking where my house is located.

Most apps require location to show the restaurants available. Why not use the location to deliver the food?

#4: If you are collecting payments upfront, ensure that your listed price matches that of the restaurant

This has happened a number of times.

I place an order. Delivery boy picks up the food. Asks me if I paid online and then asks me to pay the balance amount because the restaurant has increased its price.

Interestingly, I never had to pay the difference. The company has always picked up tab for the difference. But it involves uncomfortable conversation where the delivery boy has to make a couple of calls and then say it’s OK, I don’t need to pay anything more.

Ensure that the prices you mention in your app is reflective of the restaurants price. At least, mention when the price was last updated.

I can understand customer centric practices where you take the hit. But as a loyal customer, I do not feel right about it.

#5: In-house kitchens are preferred for lunch

While most of us don’t mind eating out from restaurants once in a while, regular order from restaurants is not something that we look forward to.

That’s where Dazo was so great in the beginning. They used to have in-house/home-made food at affordable rates. The portion was good and the quality of the food was also nice.

We’d also prefer to have separate apps/tabs for homemade food and restaurant food if you have a hybrid model.

#6: Give consumers more options when you are running a subscription business

I tried out for a month a salad subscription. While it was good in the beginning, they sometimes ended up giving burgers for lunch instead of salads.

Also, since the menu was random each day, there was no way to say no if a certain day’s food was not to your liking.

We would have continued the salad subscription for a couple of months at least if they had given us a set of options to cycle through instead of their own selection (for e.g. I do not like pasta related salads; so let me opt out of those).

#7: Don’t assume that slowly reducing the quantity of food over time will go unnoticed

I remember this tea shop vendor near my house. When he started operations, he used to give really big vada (South Indian dish) with a very small hole in the middle. Couple of months later, the size of the vada came down and the size of the hole increased.

It was obvious. He assumed that people would be OK with the change or it would go unnoticed. Well, it’s not Facebook feed for people to forget how it looked like when a change is rolled out- it’s food!

Couple of subscription services I have seen use the same tactic. They reduce the quantity of food delivered to increase profits.

Even if our eyes get deceived, our body’s natural alert mechanism (hunger), will detect this.

#8: Delivery charges are OK

Your business needs money to survive. We understand that. It’s OK to charge a nominal delivery fee.

There’s a lot of debate with India being a price conscious nation and that we are not willing to pay for delivery. I doubt the unwillingness to pay extra because most people pay exorbitant rates at movie theatres for popcorns and soda.

At some point when the venture funds run out, you’ll need to start charging for deliveries to make your business viable. So might as well target people who’d be willing to pay for it from the beginning.

I have seen order sheets filled with orders as low as Rs 30 (when Swiggy did not have a minimum).

#9: Club orders and deliver them together

There have been many instances where I order for me and a couple of my colleagues, food for most people come in one batch, and we have to wait for a long time for the next part of the order to come in (often times by another delivery boy).

This happens with aggregators that allow selection of food from multiple outlets in a single order.

As much as possible, club orders and deliver them in one go. This also means less time spent on the phone guiding the delivery boy or waiting in the lobby to collect orders.

#10: Automated recurring orders

Sometimes, due to work, we’ll forget to order lunch on time. It would be great if the food ordering app has a feature where we can set a predefined menu and kitchen preference for automated orders.

At the predefined time, the app shows a notification and allows us to change the order if required. Else, it goes through and we get the food delivered on time.

Food delivery apps are great. The convenience they have brought to consumers is unparalleled. Share with me your thoughts on what other things food delivery apps can do to create a stellar customer experience.

What do you expect from a food app?

[About the author: Adarsh Thampy is the co-founder and CEO of the marketing automation platform for WordPress, LeadFerry. You can connect with him on Twitter @conversionchamp.]

Ola Launches On Demand Grocery Delivery App ‘Ola Store’

Ola has launched an ‘on demand’ grocery delivery app – Ola Store – that will let users order all their daily basic necessities.

Ola Store Hero Image

The service is available from 8am to 11 pm daily and the store has over 12,000 products listed across 13 categories. Ola Store is currently being tested in the city of Bangalore and is available only on Android devices.

The service delivers groceries from handpicked neighbourhood stores such as Family Mall, Grocery Mart, Namdhari’s Fresh, etc. Free delivery can be availed on purchases above Rs 250, or else the delivery charge is Rs 30.

Buyers can simply select the products they want and choose immediate delivery which the company claims will be made within 90 minutes or pick 1-hour delivery slots.

Payments modes include Ola’s very own wallet, or cash or card upon delivery.

Ola is also rumored to be launching Ola bus service. Continuing with what we asked this morning – Is Ola spreading itself too thin? Do share your experience with Ola.

Mobikon Raises $2.3mn From Jungle Ventures For SE Asia Expansion

Company Name : Mobikon
Funding Amount : $2.3mn
Investor(s) Jungle Ventures

Mobikon has raised $2.3 Million growth funding, led by Singapore based Jungle Ventures. Mobikon plans to use the funds to fuel the rapid growth of the company, across markets like India, Manila, Singapore & Dubai. Mobikon has in the last 18 months, expanded out of India and is currently present in five countries, with international business contributing to 45% of the business. The company is targeting 200% growth this year.

mobikontech

Mobikon had previously raised $1.7mn Series A funding in 2012-13 from Jungle Ventures, Spring Singapore and Lion Rock. With the latest funding, the total capital raised from new and existing investors goes up to $ 5 million.

“The F&B business across Asia is set for a period of unprecedented growth and Mobikon is ideally positioned to spur this growth and at the same time, to benefit from it. We expect to partner with 3000 F&B outlets by end of this financial year and double the number in another year. This funding round would help Mobikon achieve some of the most critical scale points, including the launch of our automated marketing platform for the F&B industry.” Samir Khadepaun, Co-founder and CEO of Mobikon

Holachef Raises Rs 20 Crores In Series A Funding Led By Kalaari

Holachef has raised Series A funding of Rs 20 crore in a round led by Kalaari Capital. Anand Lunia’s India Quotient will also be participating in this investment.holachef

Holachef offers select signature dishes from professional and amateur, based? on a dynamic daily menu. It ensures delivery of the meals at a pre-selected time slot by the customer. The service was founded in September 2014 and had raised a seed fund of Rs 2 crore by India Quotient in February 2015. The investment was in the form of convertible notes, a short term debt that converts to equity when a startup raises Series A funding.

Currently, Holachef is serving over 1000 orders in a day across locations in Central and Western suburbs of Mumbai. It receives over 65% of orders through the mobile app on Android, iOS and rest from the desktop website.

Swiggy Raises $16.5mn In Series B Led by Norwest

Food ordering app, Swiggy which raised $2mn from Accel and SAIF partners in April month has now raised $16.5mn in Series B funding.swiggy

Swiggy’s Series B round of $16.5mn is led by Norwest Venture Partners (NVP) with participation from existing investors SAIF Partners and Accel Partners, and from an undisclosed global investment entity.

The funds will primarily be used to support the next phase of growth including expanding Swiggy’s footprint to other cities in India. The financing is also expected to fuel growth towards establishing a stronger brand platform and capturing an increased share of the burgeoning food delivery market in India.

“The total food delivery market in India is estimated to be USD6 billion and continues to expand at a rapid clip. Swiggy’s delivery infrastructure solves a major need in the market by enabling restaurants to concentrate on their core business and scale up their delivery revenues. Simultaneously, the product’s ease of use and the convenience it provides to consumers, has resulted in strong repeat rates and an increased customer base.” Sumer Juneja, Principal at NVP India

From Facebook Group To Foodie Community, Eattreatonline Raises $350,000 In Angel Funding

Eat Treat started out as a Facebook group back in 2014, when co-founder Arjun Sawhney—a self-confessed foodie with an insatiable appetite—felt the need to start a dialogue that would educate and empower the online community by engaging them in discussions about food. “I wanted to know where to eat, what to eat, and how and why to eat it. I had so many questions and so many ideas, that forming a community seemed only logical”, he explains.

Eattreatonline

With close to 50,000 members, the group has morphed into an active and engaging spaces in social media, garnering instant recognition amongst the food community in the country and abroad. Eattreatonline.com has been developed as a reaction to this success, and aims at filling the void that currently exists in the online food industry (the site isn’t launched yet).

Eattreatonline.com aims to blur the lines between food, fashion, art, design and celebrity.It will serve as a platform for home chefs and professionals in the food industry to promote themselves, and aims to bridge the gap between consumers and providers.

With a target audience ranging from home cooks and food lovers to restaurateurs, retailers and e-commerce executives, the site promises an all-encompassing reach across the spectrum.

“The funding raised in this round will be utilised to bring the product to life, build infrastructure and make key hires of relevant and excellent talent. The proprietary content we will develop will make us stand apart. The commencement of the platform will see a large database of tested recipes and quality articles covering various topics related to food,” said Arjun Sawhney, co-founder and CEO, EatTreatonline.com.

Started by Arjun Sawhney, who has founded the boutique Public Relations and Brand Consultancy firm, The Communication Council, Eattreatonline will be operated by Delhi based Egg Communication Pvt. Ltd., and is being backed by a pool of 15 investors including, Divitas Capital, filmmaker Homi Adajania, VOGUE India Fashion Features Fashion Bandana Tewari, interior designer Sussanne Khan, Kalyani Saha (VP Communications, Dior Couture, India), Nonita Kalra, Former Editor, Elle India, Andrea Aftab and Pia Pauro (Directors at EATINC and proprietors of Amici and The Imperial Hotel), and Shiv Khanna (Director, Catalyst Ventures).

On-demand Food Delivery Startup Box8 Secures Series A From Mayfield

Mumbai based on-demand food delivery firm, Box8, has raised Series A funding from Mayfield.

Co-founders of Box8- Anshul Gupta and Amit Raj
The funds raised will be utilized to build technology, team expansion, deepen market penetration and build a seamless customer experience across its mobile and web platforms.
“We have over 30 IITians in our team and we would like to hire more such talented individuals from different backgrounds. Execution is the key to the success of this business and we want to build a team which focuses on getting the job done.” says Anshul Gupta, co-founder, Box8.
Prior to the investment by Mayfield, Box8 has received funding from Kaushal Aggarwal of Avendus Capital, Dheeraj Rajaram of MuSigma and Indian Angel Network.

SpoonJoy Secures $1mn From SAIF; Wants To Be The Pan-India Internet-First Restaurant

Foodtech startup, Spoonjoy has raised $1mn from SAIF partners.
SpoonJoy started operations in July 2014 and is currently operational in Bangalore. Post funding, Spoonjoy will expand to Delhi & Mumbai in next 2 months.
The company earlier raised angel round from Sachin Bansal and others.

Spoonjoy
Spoonjoy
We are bringing an alternative to cooking at home.  Restaurant food is not something you can eat or you can afford everyday. Our aim is to make healthy & affordable meal accessible to everyone at a click of a button. 70% of our customers order from mobile app. A typical high quality meal at SpoonJoy costs less than Rs. 100.
We are able to achieve this by optimising supply chain & using technology to minimise delivery cost. [Manish Jethani, cofounder of Spoonjoy]
Foodtech space in India has seen massive funding over the last few months, but Spoonjoy is extremely focused on a defined segment – the company started with fruits, learnt the operational part of the business and expanded into the other categories (primarily focused on office crowd).
SpoonJoy is an Internet first restaurant, which is an exciting new format that has emerged globally. It is a highly scalable and capital efficient business. Manish has brought together a very strong management team and we believe they have the potential to build a pan-India Internet first restaurant. We are very excited to partner with them in this endeavour. [Vishal Sood, MD SAIF Partners]

foodpanda Raises Another $100mn Led By Goldman Sachs

After the last funding round of USD 110 Million in March 2015, foodpanda has now raised another $100mn, taking the total amount raised to over  $310 Million since its launch in 2012. Foodpanda Logo
After acquiring key competitors in India, Mexico, Russia, Brazil, Eastern Europe and South-East Asia, the company will use the recent investment to further expand its own delivery activities and improve overall customer experience across its 40 markets.

Last-mile delivery has been part of foodpanda’s operations since the beginning, it will now accelerate its efforts to drive customer satisfaction, aiming to offer the most convenient way of ordering food – from the mobile app and online.

foodpanda, together with its affiliated brands, focuses on emerging markets, operating in 40 countries across five continents, market leading in 32 (among them India and Russia). foodpanda is active in over 580 cities around the world, operating in 12 of the largest 20 metropolises, and partnering with over 60,000 restaurants.