Whither food tech startups?
Losses bulged to Rs137.18 crore from Rs2.12 crore in fiscal 2015, the company’s filing with the Registrar of Companies shows. Total expenses stood at Rs160.77 crore, implying that Swiggy burnt about Rs13 crore per month in FY16.
The report about the most well funded food startup is not very inspiring. In fact, the last two years have been incredibly tough for the food tech startups. There have been reports of their demise, about them just being a bubble and restaurants pulling away from these tech startups. A few, such as, Dazo and Eatlo have already shut shop.
While low order values and high delivery costs are seen as major reasons for so many failures. But this reasoning puts the emphasis completely on the market to evolve – that means time. We know none of the disruptive techs works that way, if a tech has to wait for markets to evolve, it is not disruptive enough.
We can look at Africa, a market which faces similar challenges, for a few ideas. The wine and coffee startups in this list are interesting. Any other examples or case studies that can act as inspiration for the Indian scenario?