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With Zomato turning to be a unicorn and keeping the foodtech fervour on, some of the Startups are still finding difficult to sustain their ground. One such Gurugram based Startup which was founded by former Zomato employee Alok Jain Abhimanyu Maheshwari (restaurateur) in November 2014, Yumist, has shut down its operatons. The Startup used to serve home-style meals prepared in their own kitchens. As per the company founders, failure in raising funding was one of the reasons behind the shutdown.
FOODTECH WANTS TO SCLE BUT DON’T HAVE FUNDS…
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.
However some of the Startups are leading the way and are able to get their ground but still finding it difficult to scale, as it involves huge investments and they couldn’t execute to scale without massive cash piles, which are eventually going to come with investments. This chicken and egg problem of funds to scale emanates from the very reason to become a market leader in less time.