What Makes Food Tech so Sizzling for Investment in India
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Food has always caused a stir. For long, it has churned the stomachs of the millennials and now it has caused a stir in the pockets of investors as well.
Food tech space is hot with investment and here’s what makes this space so sizzling that the investors are unable to stop themselves from taking a plunge in this sector.
A Billion-Dollar Rapidly-Growing Industry
Food is an inseparable part of our lives. From catering to the basic requirement of providing nourishment to becoming the love of the millennials, food is omnipresent and omniscient. People want to satisfy their thirst, sorrow, passion, hunger and even financial appetite with food.
Currently, the Indian Food Services (Restaurants and Food Delivery) is a $50 billion industry. It is less as compared to the other markets in the world, for example, the U.S. which is a $200 million industry.
The investors and foodpreneurs are at large in a win-win situation when it comes to investing or expanding in food tech. Creating a business out of a product that entails the millennials and is a necessity in a lot of ways is sure to produce profit and benefit
Changing the Way Indians Eat and Perceive Food
The food tech in India is changing the way millennials eat and perceive food. And technology may have a role in this. Investors are intrigued by the combination of food and technology and at the same time, see the umpteen business opportunities it has to offer and the market potential this industry has.
If the food industry in India keeps growing as rapidly as it is, then it has the potential to contribute a major chunk into the global food market. Sagar Kochhar, Chief Marketing Officer of Rebel Foods, shares, “According to reports by Research & Market, the global food tech market is expected to explode beyond USD 250 billion by 2022.” He also adds that the increasing inclination of investors, keenly observant of this growth potential, and the evolution in the way the world eats are just signs of an explosion in the food and commerce space.
He also adds, “Technology is indeed a great enabler, and people who define, mould and express this power in their business models will become harbingers of the future in the space.”
Building on Convenience and Comfort
SoftBank is a fitting example to examine the investor’s fancy with food tech start-ups and business enterprises. The Japanese investor has invested in Indian unicorns such Swiggy and Zomato, there were also reports of the Masayoshi Son-led investment conglomerate investing in Rebel Foods, formerly known as Fasoos but no confirmation has come so far.
Entrepreneur India reached out to Zomato, who refused to comment on the company’s funding raised from SoftBank but added that food and technology are a great mix. The company spokesperson said, “With an average of 100 meals consumed every month, and the number of Smartphone users increasing exponentially, food and technology play a very important role in everyday life. Together they present a great opportunity to build active solutions to improve convenience, variety, affordability, quality and hygiene around food using technology, for people and the restaurant industry”
Mildly but correctly pointed out, food tech is largely and fundamentally encashing on comfort, convenience and affordability. Abhishek Bansal, Co-Founder and CEO of Shadowfax says, “With the ease of ordering, wide choice of food and predictable fast delivery, the food tech industry has made ordering food online a habit. This is true not just for metros and tier 1 cities but increasingly even for tier 2 towns. This is driving the huge growth in the food tech industry."
A picture of many bike riders with red and orange boxes behind their backs explains the argument a lot better!