Some food tech startups are continuing to make hay, even as the segment as a whole has been in decline due to a variety of factors. Beating this trend is restaurant chain Faasos, which recently raised $30 million in funding. This round was led by Russian investment firm ru-Net. Seqouia Capital and Lightbox Ventures also participated in this round.
What makes Faasos unique?
Faasos, set up back in 2004 by Joydeep Barman and Kallol Banerjee, has been a significant innovator in the food tech segment. Its services are already operational in 15 Indian cities. These include the NCR region, Pune, Mumbai, Bangalore and others. The latest round of funding is expected to see it expand its services to Kolkata, Chandigarh and Dehradun, among others.
Faasos creates a comprehensive meal solutions platform-an online kitchen which can serve all 4 meals a day, anytime and at any place. These orders can be placed via the app, and unlike many other food tech startups, Faasos initiated the process of order receiving via tweets.
Its adept vertical integration means that Faasos is probably the only startup which ensures “food on demand” to be fulfilled at all 3 stages-ordering, distribution and order fulfillment. This, according to Barman, is a key reason for Faasos’s success compared to other food-tech startups. The range of food o offer is also much greater than that of most of its competitors-wraps, biryanis, rice, snacks and even desserts are all on offer, allowing for a comprehensive user experience. On its mobile app platform, over 10,000 customers are being serviced daily, and the company targets $20 million for the fiscal ending March 2016.
The bottom line
Its excellent investment achievements, and its focus on a comprehensive platform which seeks to maximize user convenience, may well se it achieve its objectives rather soon. In this respect, the aid of ru-Net will be crucial-the Russian investment firm has been an investor in Snapdeal and PepperTap for a long time.