48East, a Bangalore-based food delivery startup, has raised $5 million in a funding round led by Moore Strategic Ventures and BEENEXT. The startup plans to use the funds to expand its operations in India and Southeast Asia.
Founded in 2016 by Joseph Cherian and Nabhojit Ghosh, 48East offers a range of Asian cuisine, including Chinese, Japanese, Korean, Thai, and Vietnamese dishes. The startup has its own kitchen and delivery fleet, ensuring that the food is delivered fresh and hot.
With the latest funding round, 48East plans to expand its presence in India and Southeast Asia, where it sees a huge potential for growth. The startup aims to open more kitchens in major cities and towns, as well as launch new products and services to cater to the evolving tastes of consumers.
The rise of food delivery startups in India
48East is just one of the many food delivery startups that have emerged in India over the past few years. With the rise of e-commerce and smartphone penetration, food delivery has become a lucrative business in the country.
According to a report by RedSeer Consulting, the online food delivery market in India is expected to grow at a CAGR of 25-30% to reach $8 billion by 2022. The report also states that the number of online food delivery orders is expected to increase from 400 million in 2019 to 1.2 billion by 2022.
The growth of the food delivery market in India has attracted several investors, both domestic and international. In addition to Moore Strategic Ventures and BEENEXT, other investors in the space include SoftBank, Tencent, Naspers, and Sequoia Capital.
The challenges faced by food delivery startups
While the food delivery market in India presents a huge opportunity, it also comes with its own set of challenges. One of the biggest challenges faced by food delivery startups is the intense competition in the space.
There are several players in the market, including Swiggy, Zomato, Uber Eats, and Foodpanda, all vying for a share of the pie. This has led to a price war, with companies offering deep discounts and cashbacks to attract customers.
Another challenge faced by food delivery startups is the high cost of customer acquisition. With so many players in the market, it can be difficult to stand out and attract customers. Startups need to invest heavily in marketing and advertising to build brand awareness and acquire customers.
The future of food delivery in India
Despite the challenges, the future looks bright for food delivery startups in India. The market is expected to continue growing at a rapid pace, driven by factors such as increasing smartphone penetration, rising disposable incomes, and changing consumer preferences.
To succeed in this market, startups need to focus on innovation and differentiation. They need to offer unique products and services that cater to the evolving tastes of consumers. They also need to invest in technology to improve the customer experience and streamline operations.
In conclusion, 48East’s latest funding round is a testament to the potential of the food delivery market in India. With the funds raised, the startup plans to expand its operations and capture a larger share of the market. While the competition is intense, there is still room for innovation and differentiation, and startups that can offer unique products and services are likely to succeed in this space.