And Investors continue to push more money into India’s online food delivery platforms. Grab, another food delivery start-up has now secured $1 million in funding from Oliphans Capital and Haresh Chawla, former CEO of Network18.
With this freshly raised amount, the company is looking to expand its service to other markets along with an expansion of team. It recently started operations in Pune.
The company was founded in 2012 by Jignesh Patel, Nishant Vora and Pratish Sanghvi. It is a hyper local delivery service focused on restaurants and food enterprises. It has got over 600 riders who deliver food within just 20 minutes. And even though the delivery model looks capital intensive, Grab claims to have processed orders worth over Rs. 35 crores.
Its client list includes Subway, Spaghetti Kitchen, Global Grill, Pizza Roma, Noodle Bar, Moti Mahal, Brunch Munch, Tandoor Se, The Yellow Chilli, and many more.
Pratish Sanghvi, who handles business development for the company, said,
Home delivery orders are a significant portion of a restaurants turnover. However, the last mile delivery is a challenge for most restaurants. While Grab reduces a restaurant’s delivery costs by converting it from fixed to a variable cost, it also allows it to expand its reach to a larger customer base.
While there are now numerous startups in India’s online food delivery business, more established players in the market include Rocket Internet backed FoodPanda, which recently started food delivery service and Zomato, which is one of the biggest online portal related to food and started offering delivery in selected Delhi localities. It has raised $163.8 million in 7 funding rounds and has acquired 8 start-ups till date.
As for upcoming startups, Swiggy, an online food delivery platform, recently gulped in a decent $2 Million round from Accel Partners and SAIF partners. While Bite Club, a startup working on similar lines also grabbed a $500 K seed round from numerous investors.
