PRESS RELEASES

November 22, 2018

Food-tech raised $1.09 billion from Private Equity players in 2018 YTD: VCCEdge reports

In the last 5 years, food-tech has received a total investment of $2.27 billion from private equity players where they have raised the highest in 2018, around $1.09 billion. The year has also given 2 unicorns - Zomato and Swiggy, with more companies expected to acquire the status of unicorn in the next couple of years.
In recent years food-tech industry has seen many entrants into the market but at the same time not all of them got success and had to shut down their operations despite fundings in some of these startups. Companies like Yumist, TinyOwl, Spoonjoy, Dazo, Eatonomist, among others closed their operations due to cash crunch, operations heavy etc.
Innovations in Food Industry led to the demand and changed the customer needs. From the traditional restaurant to the increase in numbers of personal chefs, catering services, box-delivery, pop-up kitchen, on-demand-meals and on-demand-chefs, the food industry has changed rapidly in the last few years. "Online platforms and the boom in ecommerce has made everything readily available anywhere at any time. This can be attributed to the changing demographics, changing customer preferences, increase in disposable incomes, urbanisation and growth of organised retail," says Sahaj Kumar, Sr. Manager – Research, VCCEdge.
Other factors such as online ordering, home delivery, cash back facilities, reward points and heavy discounts summarize the current delights that restaurants offer to the consumers. By 2021, the restaurant sector will contribute almost 2.1% to the nation’s GDP witnessing a CAGR of 10%..
"The new-age organisations have used new technologies like robotics, artificial intelligence, and machine learning or computer vision to invent and optimise solutions," says Shalil Gupta, Managing Partner – Research, VCCEdge.
graph
Source: VCCEdge
Cab aggregators like Ola and Uber have also ventured into the food tech space as they saw a huge growth opportunity in the segment. The two companies have made many acquisitions in this segment, for example, Ola acquired Foodpanda’s indian business and started food delivery services whereas Uber started its food business under Ubereats in 2017 in India claims that it has a listing from more than 2,000 restaurants with at least 40 new restaurants being added daily. The food business of Ubereats is experiencing nearly 50% growth month-on-month.
About VCCEdge
VCCEdge is a premier research platform providing comprehensive data on Indian Private Market. It offers most updated information on deals, directories and financials data that adds up to a holistic financial research platform which is leveraged by investors, fund managers, PE's & VC's for deal origination, deal structuring, and valuations empowering them to make well-informed decisions, manage risk and achieve market-beating returns. It has a wide coverage of 110K private companies and startups.
To get deeper insights, please download the report on the link here: https://bit.ly/2DCxhN6
For more information and media queries, please contact Shreya Jain, shreya.jain@vccircle.com.

Contact Us

NewsCorp Mosaic Digital

DELHI

17, Okhla Industrial Estate,
Phase 3,
New Delhi - 110020
Phone: +91 011 49711180, +91 011 68132900
Email: support@vccedge.com

MUMBAI

Dow Jones & Co. Unit 93, 9th Floor 2 North Ave. Maker Maxity Bandra Kurla Complex, Bandra (East), Mumbai - 400051 Maharashtra, India
Phone: +91 022 61456100

BENGALURU

WeWork Co-Working,
No.43 Residency Road, Shanthala Nagar,
Ashok Nagar, Near Gateway Hotel, Bangalore - 560025
Phone: +91 080 69405500