The food tech segment in India is undergoing a major transformation. Today, millennials are seeking innovative recipes and special diet options. Foodtech startups are moving away from being basic food delivery platforms.
The food delivery segment is getting crowded and Cloud Kitchen is the way for growth and innovation. Moreover, India has a dearth of quality food restaurants and hence, a supply chain needs to be created through cloud kitchens. This can also help increase margins (45 % – 55 %) by doing backward integration. Furthermore, cloud kitchens offer exclusive gourmet offerings and happen to be a more profitable venture sans the real estate burden.
Taking a cue from the above benefits that can be accrued through Cloud Kitchens, OYO has started 20 cloud kitchens and is looking to acquire FreshMenu for $50 – $60 million. In 2018, Zomato started its cloud kitchen platform Loyal Hospitality while UberEats joined hands with Café Coffee Day to venture into virtual restaurants. Moreover, in January 2019, Box8 and InnerChef raised $15 million and $6.17 million respectively.
Source: DNA India