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According to TechSci Research report India Foodtech Market By Operation Type, By Source of
Order, By Payment Method, Competition Forecast and Opportunities, 2011 2021, the foodtech
market in India is projected to grow at a CAGR of over 12% during 2016 - 2021. Over the last couple of
years, the countrys foodtech market has been witnessing huge fund inflows from domestic as well as
foreign investors. On the basis of operation type, the market has been segmented into two categories,
namely, food aggregators and restaurant based. Among these categories, restaurant based segment
dominated the overall market in 2015, and the segment is anticipated to maintain its dominance over
the next five years as well, owing to consumer loyalty and frequent cashbacks/discounts offered by the
companies. In 2015, Cash on Delivery was the most preferred mode of payment among Indian
consumers. Moreover, web based source of ordering dominated the India foodtech market in 2015 as it
offers seamless customer experience in terms of ease of ordering, choosing alternate payment options
and order tracking. India Foodtech Market By Operation Type, By Source of Order, By Payment
Method, Competition Forecast and Opportunities, 2011 2021 discusses the following aspects
related to foodtech market in India:
So what happened in past one year that slammed this sector, forcing
investors to pull their legs up and stop the lavish lunches? Was it the
business model execution failure or the timing is not right or its the
tightening of investors purse strings that drowned the companies
amidst cash crunch? Lets have a closer look into the market.
But none of these have touched the top of the value chain which
is fooditself. When I say food it can be companies coming
up with non-traditional innovative foods, companies working on
extending the life of food, companies working on a vegetarian
substitute for egg and chicken and even those who are backward
integrated till farms to deliver organic food experience,
added Setu.
The Twisted Model Maze Of
FoodTech In India
Imagine how will you put quality check processes in place when
food is cooked at multiple homes spread across city and how will
you manage the operational challenge of picking up food,
packaging it and delivering it to the customer economically while
also scaling it up across geographies. The solution itself is too
complex to solve a problem. So I dont think a home-cooked food
business can thrive, let alone survive, and they have to transition to
central kitchen model or come up with some other innovative
solutions to simplify the solution, said Kumar.
The FY 2015-16 Funding Trends
In FoodTech
There are hardly any real FoodTech companies and the worst, there
are hardly any investment going into this sector. The time has come
for funding to support the growth of real FoodTech companies even
if these are not so lean in nature (and hence not liked by the typical
investor). There are no more lean businesses which can be created
in food market as all the lower value chains have been taken care of
by some amazing companies in recent past and time has come to
pump the money to grow the businesses in the higher value chain.
The time has to come up for the real FoodTech to stand up and
investors/media to provide the support it deserves and needs,
added Setu.
Whereas, Sawhney and angel investor, Sanjay Mehta, are neutral
on this and believe that capital eventually consolidates towards the
players with a long term vision, strong execution and sound unit
economics. The food business is no different and it will always be
the case where maximum investments are garnered by top few
performing startups but there is scope for many to exploit the food
space with innovation.
Future Of FoodTech In India
But does this suggest that the FoodTech sector is moving towards
saturation? Its a no according to Setu. He believes that funding
slow down has nothing to do with saturation as funding can not be a
yardstick to measure the potential of a market. But it does affect and
slow down the growth of a market for sure.
All in all, the Indian Startup ecosystem is too nascent to make any
solid forecasting of its market future. The ecosystem, being flooded
with too many Me-too models, has made recognition of disruptive
ideas or technologies in food industry difficult. However, the shift
in the funding scenario in the market would churn out the flawed
businesses and is expected to allow execution and growth of true
innovation in the FoodTech industry.
FoodTech industry, today, has taken center stage. It has stolen the limelight
from eCommerce startups in India. We Indians, in particular, have an untamed
love for food. Food has always been the top priority for our nations citizens.
Dont believe me? Well, let me just tell you that the FoodTech industry is going
to make over $50billion in revenues in 2015 alone and this is set to grow by 16-
20% every year.
So what made the FoodTech industry such a hit in India apart from the
love for food we have and why so late?
The thing with the startup industry is that in every 3-4 years a new challenge
poses itself and its the technological advances that contribute vastly to arriving
at a solution. Rewind back to 5 years and the FoodTech industry would be a
distant and rather unfeasible dream. today, however, there are more than 10
high profile food tech startups that are killing it.
How does cloud play a role in Food Tech industry and where did telephony
come into play? Well, the FoodTech industry and Cloud telephony go hand in
hand. It has enabled FoodTech to cut down losses drastically and improve their
efficiency. According to KPMG , Technology such as social media and Cloud
based services has allowed these industries to engage more with customers
and explore more business opportunities.
Lets go through some of the things Cloud and specifically cloud-telephony did
for the Food Tech industry and opened it up so wide. we can then discuss why
is cloud telephony better than its traditional counterpart.
Well, there are a lot of things that cloud-telephony can do for you. You can
automate a lot of operations that are being done on a daily basis. Whats really
cool about this is that it saves you a whole lot of time as well as human effort.
Lets show you how.
Integrate Cloud-telephony right into your apps
First things first, Cloud telephony can be tightly integrated to your frontend and
backend system. You can use APIs to integrate these systems with customer
facing websites and apps so that communication between your customers and
you becomes seamless.
Using cloud telephony, you can connect two people via a virtual number that
first connects to the dialer and then the dialed person. This allows restaurants,
delivery services etc to contact their customer while maintaining the customers
privacy.
Assign the right outlet depending on the
location
Another advantage is the ability to track locations using the number from which
a call has been placed. This feature has allowed the Food tech industry to re-
route calls to the right outlet. Therefore minimizing the possibilities of failed
orders due to wrong outlet connection.
There are various food and beverage franchises using this feature such as
Barbeque Nation, which has just one customer facing number. Whenever we
dial this number, we are always connected to the nearest outlet to our location.
This makes the call flow much more simple and easy to use for both, your
customer representative as well as the customer who wants to order food.
Telephony is the best way to interact with customers. Even today, telephony has
an adoption rate of 70% for customer support and engagement and is only
second to word of mouth interaction.
There are two ways of doing this. Either you can go ahead and set up a
traditional call center or use Cloud telephony. Cloud telephony is quite honestly
a much better option than traditional setups because it is easier to deploy and
manage.
Addition of new features and users are handled via a simple web interface,
whereas to do the same task with a traditional telephonic system you need to
make hardware and software changes to accommodate new features and
users. Plus, these systems need a hell lot of maintenance and monetary
investment.
Cloud telephony offers great data insights into your customers. With features
like call recordings and call frequency mapping, it enables you to understand
your customer base better and therefore you stand a better chance to make
business decisions that can drive more profits and more business opportunities
to your door.
Apart from these inbuilt functionalities, cloud telephony also has out-of-box stuff
like easy integration with CRMs, a daily report of all calls made (incoming and
outgoing), calls missed and probable opportunities you converted or missed.
Other features include email alerts for a specific event, SMS, call alerts and
much more.
Takeaway..
So you see how Cloud telephony can help you get more out of the food tech
industry. You can not only just make calls and send SMS but make your
telephonic system smart, make it aware of your customers. Maintain customer
privacy as well as verify orders and delivery with small and simple methods.
There are a lot of things that Cloud telephony could help with and make your life
easier. So if you want to know more dont hesitate to call us on +91 8088-919-
888 or email us at hello@exotel.in . Wed love to hear from you!