In previous years, startups were finding it a little difficult to get investments, but 2018 has proved that the tides are turning. Food startups such as Zomato received $155 million from Alibaba’s Ant Financial and Swiggy $100 million from South Africa’s Naspers and Chinese e-commerce company Meituan-Dianping all in 2018.
With this new insight, startups are jumping back on the food tech bandwagon with hopes to gather investment and propel forward. 2017-18 saw $370 mil in food tech startups which were about $300 mil more than the previous year, according to the startup tracker Tracxn. The daily volumes of orders across the country have about doubled as well.
For food startups that worked through the funding crunch of last year, they had found it difficult to keep up then and are now focusing on technology and efficiency. An example of this is Swiggy, who reduced costs by 35%. The past year has also seen startups working directly with restaurants to better their kitchens.