Food Tech Startups May Face Tough Times Ahead...
Few months ago food-technology startups were played key role for investors and attracted millions of dollars in funding. They expanded rapidly and burnt cash in marketing and advertising as they chased customers and market share. And then they got more funding to do the same thing all over again.
Several food-tech startups are reeling under financial pressure to control costs and sustain investor interest; some are shutting shop, tweaking their businesses, pausing operations or reducing their staff count.
Since last year, 31 food-tech startups have raised seed or angel funding, according to startup data tracker Tracxn, but only five have been able to raise follow-on or series-A funding from institutional investors. This is forcing many of the other startups to reduce their cash burn rate as they re-assess their business models.
"This is just the beginning of the downturn cycle," said a Bengaluru-based venture capitalist, also requesting anonymity since his firm holds investments in these segments. "The food-tech model involves a lot of cash-burn and is very operations-intensive."
Here are some food startups in India.
- Zomato
- Foodpanda
- Swiggy
- Tinyowl
- Innerchef
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