Rising competition in the foodtech space is leading to the industry's growth, but it is important to differentiate your brand, feels Rashmi Daga, FreshMenu Founder and CEO .
There's no greater love than the love of food. And nowhere is it more apparent than in India, the sixth largest food industry in the world. The entry of tech into the industry has led to the mushrooming of foodtech startups across the country. Be it food delivery, personal chefs, or box meals, a host of startups are cooking up new ideas. But how does one stand out in this over-crowded market?
At TechSparks 2018, Rashmi Daga, Founder and CEO, FreshMenu, speaking on the topic of “How to differentiate in a crowded market”, said good supply is both good food and good delivery.
Talking about the journey of her four-year-old startup, Rashmi said,
“The food industry worth is $50 billion industry and growing at 25 percent CAGR. And the insight to start up was realising that 'Staying in is the new going out – the new normal'.”
She added that another big insight was that young India is looking for meal options that would be guilt-free, exotic, and memorable. “Individuals and young couples are opting out of full-time kitchens and grocery hoarding,” she said.
India is short of food brands at a time when consumers are getting used to the convenience of home delivery, Rashmi added. “It started with perceiving a real need. We decided to bring 15 minutes of pure joy in people’s stressful lives. Good food on demand.”
The startup tries to bring the world on a customer’s plate. “Today, the biggest aspiration is where are we travelling. We bring a part of the world’s food to them and let customers explore palates – feel, try, and experiment the world of food.”
Rashmi also stressed the importance of good marketing, stating good photography and packaging could help hardsell the brand.
The FreshMenu Model
FreshMenu operates on a cloud kitchen model where food is cooked and delivered. It saves on rentals and passes the benefits of saving operating costs to customers.
The Bengaluru-based firm raised $5 million in Series A funding round from Lightspeed Venture Partners in early 2015; it subsequently raised another $17 million in a round in 2016 that was led by Zodius.
A recent media report said that online food ordering startup Foodvista India Pvt. Ltd, which operates FreshMenu is in talks to raise $25-30 million from new and existing investors.
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