In an exclusive interaction with Restaurant India, Revant Bahte, VP, Faaso\'s share the idea of entering the food-app business.
What was the reason that you entered into Food Mobile app from a food start-ups?
The idea for the business was always to be in the delivery business where we get to ensure that people get affordable food delivered to them quickly. When we started three years back, we were having very small outlet with take away and delivery. The model work very well because the unit cost was low, it was only delivery and we got a very good response. We started with wraps, the category which was not tapped in India and the key benefit to it was that it was palatable to the Indian tongue not like a western food which you can’t have every day. We wanted to create product which one could have every day.
How is food tech start-ups like TinyOwl, Faaso’s and foodpanda is changing the food business scenario in India?
Our business was growing very well on delivery and we were always looking to ensure that the convenient was high. We didn’t have the mobile app, but people use to call us for business. And we always wanted to put up lots of technological props in our ordering platforms and when we sensed that we launched the mobile app in April 2014. Within six months we saw that as the mobile-app was very convenient.
What is the USP of your brand? Model is sustainable as compared to the earlier one?
We were the first player across the world to take an order on Twitter. Our USP has always been to be crazy about customer’s convenience. The customer has to have life so easy that they can choose the things they want ho have and we can determine the same at the level of convenient thinking about the customers.
What is the reason that investors these days are keen on sharing opportunity with food-tech start-ups as we have seen that players like TinyOwl have raised two rounds of funding?
Food on demand industry was started by us three years back with quick delivery. Now there are too many companies who are not that big but they have understood the markets. With a model of capturing the market very fast as it focus on fast and quick delivery this segment is getting the investors attention.
You have recently raised series B of funding. What is the investment scenario? Where will you use the entire fund raised?
We are on the growth trajectory. We are doing lakhs of mobile apps orders and by the time we will have more orders we can raise series C of the funding. We are growing 20 per cent month on month and if we continue to grow on this, within six months we may raise another round.
Who do you see as your major competitor in the segment?
In today’ scenario, food business is working on two different models. On one side there are restaurant aggregators, foodpanda being the biggest in that. We are on very different model where we have our own delivery, fulfilment, supply chain; we have different items on the mobile app. So, in our business there is still nobody in the country. But as an overall food delivery, we would say that foodpanda will be the biggest competitor.
Your services are presently available in Mumbai, Pune, Ahmedabad, Baroda & Chennai. What is your plan to enter other cities?
By June we will cover entire metro cities and the tier I cities like Hyderabad, Ahmedabad, Pune, and Gurgaon will be covered. So, we will have 70 per cent of the food delivery market in these cities. We are the first in ‘food on demand’ business.