Food-tech startup Yumist racks fund from serial entrepreneur Ronnie Screwvala
Mumbai, India | Red Newswire | Dec 9, 2015 Last Updated at 01:54 PM IST.
With a sudden uprising of many food-tech startups and many failures, investors have been forced to pull back their fundings. However, some startups are still trying to attract fresh capital. Yumist, the Gurgaon-based food-tech startup has raised $2 million (Rs. 13 crore) from Unilazer Ventures founded by the serial entrepreneur Ronnie Screwvala. The other food-tech startups are still struggling to raise funds such as FreshMenu, Faasos and Swiggy.
Yumist was founded by the ex-chief marketing officer of Zomato.
On an all, market has been really tough for food-tech startups. All of them together have received $194 million funding in this year. but the higher acquisition costs have led to more cash burns forcing many startups to shutdown.
The founder and CEO of Yumist, Alok Jain said that the company aims at building a scalable and profitable business rather than focusing on just multi-city growth which has been the cause of sorrow of many other young startups. He said, “"The focus is on building a great customer experience and healthy unit economics, which has resulted in rapid organic growth for us. We'll continue with this approach going forward.” Jain founded Yumist last year along with Abhimanyu Maheshwari who is a restaurateur.
The existing investor of Yumist i.e., Orios Venture Partners participated in this latest round of funding along with Silicon Valley VC fund Team Builders Ventures. Jain said that the company’s average order size at present is Rs. 125 but they expect to take it to Rs. 180. The company also has plans of launching in Bangalore.
Yumist like startups prepare their food and deliver it which is quite different from other players in the market like FoodPanda and TinyOwl. Recently Zomato and TinyOwl made a major job cut and some others like SpoonJoy have been acquired.
Anand Lunia, an investor in Holachef said, “"Startups with their own kitchens, what we called internet-only restaurants, will become like private label brands and sell on marketplaces while aggregators like Zomato and Swiggy will also have other private internet-only restaurants on their platforms. As for full-stack aggregators like Faasos, Holachef and Biteclub, they will continue to do well in the affordable high-quality food space. Others will build their niches like Yumist, which is doing the thali/dabba business.”