Latest News – India’s food technology sector has had a trial by fire. After a bloodbath for more than a year and a half, which saw the demise of as many as 20 companies, the sector has emerged stronger and is on the path to become a billion-dollar industry. According to industry experts, almost $700 million of fresh capital has been infused into the sector in the past four months.
After a recent spate of big-bang funding of food discovery and delivery apps, experts believe the sector’s consolidation might be over and the remaining players are here to stay and thrive.
Swiggy has raised funding of $80 million, led by Naspers, the South African investor who has backed Flipkart. UberEats, currently available only in Mumbai, is planning a pan-India service.
Investors believe after consolidation, the companies have aggressive road maps and profitability, plans which would help them grow.
“Zomato has cut their cash burn and profitability has gone up 100 per cent, year-on-year. Yes, there was a bloodbath in the market, however the company focused more on the advertisement side of the business. While they have aggressive plans, they are not seeking more funds at present,” said Hitesh Oberoi, managing director and chief executive officer (CEO), Info Edge, the main investor in Zomato.
Last month, online food delivery platform Foodpanda managed to (Read More)