AI-Driven Sustainable Strategies Will Set Us Apart In Expansion: Daalchini Co-founder On being asked about trends in the space one can look forward to, the co-founder hints at two- AI-driven automation and hyper-personalization

Among several innovations and products which have taken the Indian market by storm is quick commerce, a speedy form of e-commerce delivering high-demand items, such as groceries, snacks and beverages, household essentials, and pharmacy products. The market size of the segment in India touched USD 3.34 Billion in 2024 according to market intelligence & advisory firm Mordor Intelligence. Simply put, it replaced the long-standing practice of being a dedicated customer of local kiranas and changed how Indian consumers made purchases.

However, vending machines are quickly gaining pace- capturing the out-of-home (OOH) market- to complement the 10-minute delivery offerings catering to densely populated residential areas. Generating revenue of USD 497.9 million in 2022, the intelligent vending machines market in India counts the 2017-founded Daalchini as a key player. In seven years, the start-up boasts of installing over 2,600 smart vending machines in more than 80 Indian cities across and is now counting on artificial intelligence (AI) to reduce energy consumption and incorporate sustainability. The AI-driven sustainable practices will set the start-up apart from the competitors as it expands into new geographies and product categories.

"AI will continue to play a pivotal role in Daalchini's future, helping us scale more efficiently," says Prerna Kalra, co-founder, Daalchini Technologies.

The out-of-home Concept

It was during a work visit to China when Prerna Kalra was introduced to the world of smart vending machines which supplied most fresh food items—from fruits to momos. In 2017, Kalra along with Vidya Bhushan co-founded Daalchini as a full-stack smart retail brand offering on-the-go food with a specialised supply chain capable of serving 6-meal-a-day.

Daalchini's journey began with distributing fresh meals prepared by home chefs and tiffin services. During the COVID-19 pandemic, it evolved to incorporate products from renowned cloud kitchens and D2C brands. At present, it offers products from over 190 brands and cloud kitchens, including Haldiram, Bikanervala, and Mother Dairy.

Touted as India's first 24*7 instant vending machine offering 100 per cent contactless food and snack options, it lets customers view product availability, make cashless payments, and receive real-time notifications about their purchases, leading to an enhanced overall shopping experience.

For Kalra, the Series A start-up's USP is its full-stack approach, combining the Internet of Things (IoT) with a phygital experience for users. "Unlike traditional vending machines, Daalchini's platform provides detailed analytics, empowering both brands and operators with insights to improve inventory management and offer a wider product variety based on demand patterns," she shares.

AI Entering the Picture

In 2024, AI became an indispensable part of industries and sectors worldwide and the Kalra-Bhushan venture was not privy to it. "AI is at the core of Daalchini's operational efficiency," notes Kalra, adding how the emerging technology lets the start-up predict product demand at specific locations, optimize restocking schedules through its proprietary OFT (Order for Tomorrow) engine, and personalize offerings based on consumer preferences. This set-up has led to ensuring minimal waste and higher sales. Having AI on the front end for offering personalised services has its challenges, with the biggest one being data privacy. "Balancing personalization and data privacy is essential for us," the co-founder says.

So, how does Daalchini tackle the issue? "The challenge is always to ensure transparency with users while offering personalised experiences. We've built a robust system that uses aggregated data insights rather than individual-level information to ensure privacy while still delivering personalized services," Kalra adds. On being asked if AI can play a pivotal role in creating more sustainable vending solutions for Daalchini, Kalra says there is "significant potential." "AI can optimize the energy usage of vending machines by powering them down during non-peak hours and adjusting refrigeration as needed," notes Kalra.

Way ahead

Boasting six lakh monthly active users (MAU), Kalra and the team at Daalchini are working on AI-driven features like real-time user feedback analysis, enhanced predictive maintenance, and improved product curation using machine learning (ML). On being asked about trends in the space one can look forward to, the co-founder hints at two- AI-driven automation and hyper-personalization.

"Dynamic pricing, product recommendations, and automated customer service through AI-driven chatbots are becoming increasingly important…We're also keeping an eye on developments in AI-enabled robotics, which could open doors to more sophisticated automated retail solutions soon," she says.

Daalchini also is looking to explore AI-powered smart logistics that can minimize the carbon footprint of its supply chain, "As sustainability becomes a priority, I foresee more players integrating AI to create eco-friendly solutions, making the vending industry more energyefficient and reducing overall waste."

"Our expansion plans include incorporating AI to power next-generation vending machines capable of offering hyper-localized assortments and services," concludes Kalra. The start-up aims to increase its Smart Vending Machines to 4,000-5000 in the next 12-18 months.