Foodpanda is sufficiently funded and eyes profits in the next three year
Online food ordering startup Foodpanda, had let go almost 500 employees in the last 6 months to works on their operational efficiency. Recent news from Indian Express says that a top executive confirmed that Foodpanda is almost ready with their operationally efficient platform that works with minimum number of resources.
Loss of Rs 36 crore on a revenue of Rs 4.8 crore was reported in 2015-2016 year. This lead to Foodpanda restructures their organization from resources to the ordering process.
“The last six to eight months, we have worked on near 100 per cent automation of order flows to ensure operational efficiency to meet our target of becoming profitable in the next three years,” Foodpanda CEO Saurabh Kocchar told reporters. Futher he tell reporters than they are “sufficiently funded”.
Presently active in 200 cities and is planning to work on improving existing offerings before thinking about expansion. They claim to have partnered with 12,000 restaurants and work on a commission model i.e. 10-35%.
The country’s food services market is worth $48 billion, of which the organized business is valued at $14 billion and this is growing at over 25 per cent, according to industry estimates. To capture the most out of this market, Foodpanda is launching delivery within 45 minutes services in Delhi, Pune, Hyderabad, Mumbai and Bengaluru.
Food, water, shelter are three necessities of every human being and the food industry will always grow proportionally to the population. Only 1% of the food ordered is generated online, proving this untapped market has huge potential for food delivery startups.
Started in 2012 Foodpanda with a total funding of $218M is competing in India with Swiggy that has $60M in funding.
Another player in this industry is TinyOwl, that recently shutdown all its operations except in Mumbai.