Ex-Citibank VP starts hyperlocal food delivery network Yhungry, delivers 25K orders every month
The hyperlocal delivery segment has had a roller coaster ride this year. Now, entrepreneurs aren’t giving up any chance to tap into the burgeoning hyperlocal delivery need. Besides consumer-facing hyperlocal delivery, startups like Grofers, Peppertap and Zopnow, and the B2B segment, are also catching up.
A slew of startups has also emerged in the B2B hyperlocal delivery segment. One such startup is Yhungry. It is building the next generation delivery logistics, wherein anything will be delivered to you in 30-45 minutes. There is a huge gap in the instant delivery space, and Yhungry is preparing to lead the market in this space.
The brainchild of Vikas Pandey, erstwhile VP, Citibank, Yhungry started last year. The transition has not been smooth for Vikas. He says,
Initially, it was a big change for me, moving from a well maintained air conditioned office to an office where I had to even arrange for water and do the cleaning, as well as call up delivery boys to join us.
Vikas is a chartered accountant and ICWAI (All India rank holder 12th) and commerce graduate from Kirori Mal College, Delhi University.
Genesis of Yhungry
When Vikas ordered food from online food portals, he’d find it surprising that each restaurant managed their logistics on their own. He found this business model completely non-viable and hence saw an opportunity to offer the restaurants a complete solution. “Thus, we started with our B2B model, to provide restaurants a delivery solution; the B2C side of the business was already crowded,” adds Vikas.
Currently, the B2B hyperlocal delivery segment is not crowded like the consumer facing one. Besides Yhungry, Quickli is another player in the B2B space. However, it has taken a horizontal approach while Yhungry only caters to restaurant deliveries. Talking about the differentiators, Vikas outlines,
“We have the largest team in Delhi/NCR and we continue to build an even larger team. We have plans to hire at least 1200 riders by the end of this financial year.” Delivery is a manpower intensive game so Vikas believes that startups able to handle their logistic teams well will be winners in this game.
The company processes around 800-1000 transactions a day, with a GMV of approximately one crore on a monthly basis. At present, close to 200 brands are associated with the company.
Yhungry charges a flat fee/order to restaurants, which also depends on the number of orders and distance. “We started off last year around August and had a GMV close to INR three crore. In the current financial year, we are looking forward to cross INR three crore of GMV sales in the first quarter itself,” reveals Vikas.
Yhungry had raised initial funds from family and friends and is now in talks with a few investors for a Series A round. Pointing out challenges, Vikas says,
The biggest challenge is retaining a delivery boy. A delivery boy today is a valuable resource and has various options. With the ever increasing internet penetration and rising income levels, demand for our services are on a steep growth trajectory.
Being CA helps you to keep tab on burn rate
Vikas feels that being a CA helps in starting up. He outlines,
First of all, CAs are professional, have more in-depth knowledge and commercial insight to impart to running a business. Undoubtedly, a business being run by a CA is always run capital efficiently. That’s how we have been running our business; almost EBIDTA positive. I love numbers and can tell you exactly how much the cost is when my rider walks for even 100 meters, where would we break even, what is the optimum utilisation, and how many orders will keep my capacity unutilized etc.
On way to create network larger than India Railways
I’ve always wondered why we can’t create a network larger and deeper than Indian Railways. We aspire to do that, and at the same time, generate employment for an unprecedented number of people. I can assure you that the number will be in lakhs; but all of them will not be on our payroll. We want to bring entrepreneurship to the lowest strata of society.
At present, Yhungry is an on-demand logistic company which happens to be operating only in food as of now. Vikas concludes
We have plans to launch other categories very soon.
Besides Yhungry, Quickli, Swiggy, and Grab.in are currently evangelizing the B2B hyperlocal delivery space. While Swiggy secured $18.5 million funding from Accel Partners and SAIF Partners and NVP, Grab.in snapped up $1 million from Oliphans Capital and independent investor Haresh Chawla.
According to YourStory sources, Gurgaon-based Quickli and Roadrunnr are also in advanced talks to raise investment. So far, consumer facing food and grocery delivery startups are having a ball in India, and it appears business-centric delivery networks will also gather same interest from the VC community.