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After crossing 3 million orders Zomato is looking forward to lure Alibaba to invest $200 million (INR 1400 Cr). If the investment materialises Zomato will be valued as unicorn and its valuation is evaluated to shoot upto $1.1 Billion.
According to ET, one of the closed sources said “There are synergies between the two players in the international markets, especially Southeast Asia where Alibaba is building a strong presence. But the deal is not finalised as there is no term sheet yet.”
Zomato to be first in the Unicorn queue in FoodTech
Zomato has been one of the earliest FoodTech Startups which started as a review platform for restaurants and eventually evolved to a booking platform with subscriptions on selected services. The company had been undergoing losses in the past and in order to expand its revenue channels, its is now looking to bring in revenues in the company in the form of subscription services of every kind and type. In accordance to the proposed strategy zomato has recently launched Zomato Treats and its Gold Membership to reward its high-ticket size consumers in India.
FoodTech in particular, has seen a surge in the years 2014-16 but now the froth has settled, as only handful of companies are able to soar through viz. Swiggy, FreshMenu, Innerchef. Holachef, Faasos and Food Panda. Food Panda even went ahead to bring in porn-star turned actress Sunny Leone for their online campaign to fantasize their TG. Unlike Zomato Food Panda had been through extreme controversies and some of them even got highlighted into leading media portals around embezzlement of funds. However the company later got acquired by Delivery Hero.
Google and Uber are giving tough competition to Indigenous FoodTech Startups
On the other hand, companies like Google and Uber are looking to intrude into the FoodTech territory through their own set of expertise. Google launched the Hyperlocal Services App Aero to bring aggregation services in the space of General – To Do Things for a common household in India, including food delivery, while Uber launched UberEats in Mumbai and Delhi NCR to deliver food orders with no minimum order size.
The FoodTech fervour is on…
The FoodTech fervour seems to be moving towards consolidation and founders are finding to difficult to sustain with the existing revenue channels as 2017 is more of rationalisation and less of pumped up valuation for investors community. Also the recent shutdown of some of the biggest food delivery startups reveals that the space is highly competitive and users are driven through discounts in maximum times and quantity, leading to skimmed margins and huge dependability on the investors money to run the show. Some of the leading Startups which have been shut down are TinyOwl, Dazo, Zupermeal, Zeppery, BiteClub, and Eatonomist.