Food Tech Sector in India

FOOD TECH
SECTOR
IN INDIA
Online
Groceries
Food Discovery
Food Delivery
Timeline of Food
Tech
YEAR
NAME
TYPE
SHUT DOWN
1989
PEAPOD
GROCERY
DELIVERY
NA
1994
PIZZA HUT
PIZZA
DELIVERY
NA
1996
WEBVAN
GROCERY
2001
1998
KOZMO
GROCERY
2001
1999
SEAMLESS WEB
CATERING
MERGED WITH
GRUBHUB IN
2013
2004
GRUBHUB
FOOD
DELIVERY
NA
Food Tech in
India
- Online
Groceries
Indian online grocery market is set to hit Rs

2.7 billion mark by FY2019 following the
surge in number of players operating in the
industry, says a report.
India is the6th largestgrocery market

in the world
Only5-8% of grocery stores are
organized corporations. The vast
majority are mom & pop type shops that
are similar to convenience stores in the US
and are referred to as kiranas
The online grocery market is growing
at25-30% annually in metropolitan
areas and large cities
Margins are below 10%
KEY PLAYERS TILL 2015:

1. BIGBASKET
2. GROFERS
3. LOCALBANYA
4. ZOPNOW
Three to four years ago the buzz was around

grocery sites shutting down. Now, the survivors
and new entrants are thriving. Four years ago,
a number of startups had come up in this sector
but most shut down pretty soon mostly due to
lack of investment and customer base.
FUNDING RAISED BY TOP 5 in

2015:
WHAT IS DRIVING THIS

GROWTH
CHANGING ?HABITS OF CONSUMERS
CONVIENCE
LOGISTICS & SUPPLY CHAIN
MANAGEMENT
The biggest change is the habit change of

consumersto buy grocery online. We are
changing the way people shop for grocery,
says Mukesh Singh, Co-founder and CEO
ofZopNow.
BUT IS THE
GROCERY
SECTOR
ACTUALLY
FLURISHING?
On April 25, Gurgaon-based hyperlocal

delivery start-up PepperTap, announced its
intention to stop operations across the
country by May this year following continued
losses and a weak cash flow.
Closure of on-demand grocery delivery
service Nearby by e-commerce major
Flipkart, who started it a mere five months
ago as an experiment in Bengaluru.
In January this year, PepperTaps peer
MAJOR REASONS FOR

FAILURE:
1. Not enough discounts
2. Wafer Thin Margins
3. Huge Marketing Costs
(Bigbasket, Grofers)
4. Users are discount hungry
and disloyal
5. Operational issues
PLAYERS TO WATCH OUT

FOR:
1. BIGBAZAAR DELIVERY
2. SPENCERS FOOD DELIVERY
3. AMAZON
4. GODREJ NATURE BASKET
5. RELIANCE FRESH
Food Tech in
India
- Food Delivery
KEY PLAYERS :
1. ZOMATO
2. SWIGGY
3. FOOD PANDA
4. FASOOS
Three to four years ago the buzz was around

grocery sites shutting down. Now, the survivors
and new entrants are thriving. Four years ago,
a number of startups had come up in this sector
but most shut down pretty soon mostly due to
lack of investment and customer base.
FAILED STARTUPS:
1.TINYOWL
2. DAZOS
3. SPOONJOY
4. LANGHAR
Major Acquisitions
Tastykhana:Acquired by FoodPanda
(2014)
Delyver:Acquired by BigBasket (2015)
JustEatin:Acquired by FoodPanda (2015)
MealsonWheels:Acquired by Antfarm
(2014)
GetMeFood:Acquired by Monocept.com
(2015)
MAJOR REASONS FOR

FAILURE:
1. Timely delivery.
2. Loyalty
3. Flawed business models
4. No or very little profits
5. Peak hours
Firms such as Zomato, FoodPanda, SpoonJoy
and TinyOwl that help customers discover,
order and deliver food to their places, have
scaled down business. Others such as Dazo
and Langhar have shut shop, resulting in
the sector losing 3,000 people in the past
According to a January 28 report in The

Times of India, Rocket Internet backed
Foodpanda has not found a buyer
even with a rock bottom price tag of
$10-15 million.
You can't sustain if you sell a Rs 130 meal

for Rs 100 and that's what happened."
Deepinder Goyal, co-founder, Zomato, says
companies were buying at 100% prices and
selling at discount.
Food Tech in
India
NEW AND
INNOVATIVE
STARTUPS IN
TOP 10 INNOVATIVE STARTUPS

IN INDIA :
NAME
PLACE OF
ORIGIN
TYPE
BOX8
MUMBAI
FOOD DELIVERY
DROPKAFFE
BANGALORE
BEVERAGE DELIVERY
PICKLE &POWDER CHENNAI
PICKLES AND MASALAS
GULLUS KITCHEN
CHENNAI
COLLEGE STUDENTS
THE FIRST MEAL
HYDERABAD
BREAKFAST
SALAD DAYS
NCR
SALADS AND JUICES
FOOD IN KILOS
MUMBAI
WEIGHED FOOD
FROM A HOME
CHENNAI
FOOD FROM HOUSES
FRSH.COM
GURGAON
HEALTHY FOOD
CLOZERR
CHENNAI
LOYALTY PROGRAM

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FOOD TECH

Indian online grocery market is set to hit Rs

India is the6th largestgrocery market

KEY PLAYERS TILL 2015:

Three to four years ago the buzz was around

FUNDING RAISED BY TOP 5 in

WHAT IS DRIVING THIS

The biggest change is the habit change of

On April 25, Gurgaon-based hyperlocal

MAJOR REASONS FOR

PLAYERS TO WATCH OUT

Three to four years ago the buzz was around

MAJOR REASONS FOR

According to a January 28 report in The

You can't sustain if you sell a Rs 130 meal

TOP 10 INNOVATIVE STARTUPS

PICKLE &POWDER CHENNAI

PICKLES AND MASALAS

THE FIRST MEAL

SALADS AND JUICES

FOOD FROM HOUSES

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