Online Food Ordering startup Grab raises seed funding of $1 million funding from Oliphans Capital and angel investor Haresh Chawla, former Chief Executive Officer of Network 18. The company is a hyper local delivery service focused on restaurants and food enterprises.
Grab.in has a team 600+ riders across Mumbai and Pune connected via a technology platform. They enable speedy pickup and delivery of orders. The company ensures delivery of products within 35 minutes of the order. Grab has tied up with over 400 restaurants for delivery of food. Grab smart riders are connected and traceable in real time with the help of Grab’s mobile app.
Grab is expanding its services into newer markets. In Pune, Grab is planning to employ 800 riders and planning to generate 7000 orders daily across 700 outlets. Mumbai based Grab (formerly known as Grab a Grub) was founded by Jignesh Patel, Nishant Vora and Pratish Sanghvi in 2012. The company expanding its reach, they started delivering tiffins competing with the dabbawallas.
“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,” says Pratish Sanghvi after seed funding.
“While online food ordering is catching the customer’s attention, restaurants eventually take care of the final delivery. Hence, we do not face competition from the online food ordering vertical. Hyper-local logistics remains our forte and our focused attention on its execution is Grab’s biggest strength,” says Nishant Vora.
With the changes in technology and changing buying patterns of consumers, the food technology industry is been valued at $15 billion and will grow at 16% year on year, will reach $28 billion by end of 2018. Home delivery is an associated segment is witnessing a higher growth of 40%. Industry observers are of opinion that the food and grocery market will attract heavy investments in the coming months in India.
Over the past six to eight months, venture capitalists are pumping funds into food and home delivery segment of the online business. TinyOwl raised Rs. 100 crores in its funding from Sequoia Capital, Matrix Partners and Nexus Venture Partners. Another Bengaluru based company Swiggy raised $2 million funding from Accel Partners and SAIF Partners.
Apart from this developments, industry biggies Foodpanda and Zomato have forayed into food delivery and online ordering too. Foodpanda have started food delivery in Hyderabad, Delhi, Mumbai, Pune and Bengaluru and soon expands in 12 other cities in next few months. Zomato has rolled out their services in Delhi NCR region and starts the services in Bengaluru, Mumbai and other cities once the services is successful in Delhi.
Cab aggregator Ola too launched food delivery feature called Ola Cafe on its app. They have already rolled the services in some parts of Delhi NCR, Bengaluru, Mumbai and Hyderabad. The food delivery to users will be just 20 minutes.