Founded in April 2014 by Abhiudaya Parihar, Arunabh Parihar, Ram Manohar Rai, Rohit Gupta and Sudhir Prakash, Vadodara-based food ordering marketplace Boibanit has raised $150,000 in an angel round of funding. The startup not only allows users to order food online from multiple restaurants but also acts as the delivery agent on behalf of those restaurants. The investment came from Varun Ahuja (R Kumar Textile Group) and Anubhav Verma (investment banker).
The startup aims to utilise the new funding for technology up-gradation as well as to add more restaurants and locations. Previously, it had raised seed funding from the promoters of the company.
Recalling the initial days, Abhiudaya (Co-Founder, COO) said, “ I used to visit Vadodara a lot, when I was working in Gujarat Refinery IOCL. There were times, especially when Dominoes refused to deliver over 3 kms a couple of times. Then we used to think why can’t there be someone who can deliver food of choice from restaurants in the city, located more than 5 Km from the Refinery Township. That’s how the idea of building Boibanit came to us.”
How are the order placed and how is the delivery processes coordinated?
In the chain of execution, the order is received at Boibanit’s call centre and restaurants’ commitment on order & time is conveyed to the customer. Then the order is delivered through its nearest available delivery boy in the committed time.
The software which is being used to manage the orders has been developed in-house and is in an evolving stage. This software, when matured, should also technologically help restaurants who need it.
Present status and future plans
The firm is targeting 2 lakh deliveries by the end of this financial year. Currently, it operates in Vadodra, Indore, Surat, Lucknow, Noida, Ghaziabad & Ahmadabad and also planning to launch Bhopal this month. The startup has tied up with 350 restaurants and claims to be adding 3-4 new restaurants to its network every week. It processes 250-300 deliveries during weekends.
In the next 3-5 years, it intends to serve most Indians, living in more than 150 cities. Other than this, the startup also wants to be the best delivery service provider in the subcontinent and looking forward to explore collaboration with Chinese & European food delivery services.
Competition & Market size
As per National Restaurant Association of India report, the organized food sector, led by online services will be around $28 billion by 2018. Home delivery is going to be about 30% at $9-10 billion.
While these numbers might look promising, several food tech startups are having a good share of troubles. Even the funded companies are facing issues. Dazo shut down its operations in October. Similarly, TinyOwl reportedly withdrew its services from Chennai, Pune, Hyderabad and Delhi and fired around 200 employees.
However, since now the challenges faced by such companies are also coming into the limelight, there is a lot of scope for the new players to learn from the errors made by their peers and predecessors.Category Investments News