On-demand food delivery platform Faasos has reduced its losses by 26 per cent in the financial year 2016-17. The Sequoia-backed company’s revenue increased by 35 per cent as compared to previous fiscal, reveals a RoC filing.
Faasos had made revenue of Rs 89.06 crore, which stood at Rs 66.21 crore last year. Meanwhile, it also reduced expenses by 4 percent with an overall growth in revenue. The total losses incurred in the last fiscal was Rs 82.03 crore while in previous fiscal its losses mounted to Rs 111 crore.
The company had pivoted from marketplace to a multi-brand cloud kitchen platform in 2015. Fassos offers four in-house brands including Behrouz Biryani, Oven Story Pizza and Kettle & Kegs on its platform across 14 cities in the country. It also leverages food delivery platforms like Swiggy, Google’s Areo and UberEats to rake in orders.
The company had raised Rs 41.44 crore in an extension of its previous Rs 200 crore funding round from investors including Sequoia, Lightbox Ventures II, RuNet South Asia and RB Investments among others.
So far, Faasos had raised $54 million from aforementioned investors, according to data available on public platforms.
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Cloud Kitchen seems to have saved Faasos from a fate that befell many food-tech firms. Cloud kitchen, a term used for kitchens situated in remote areas with no storefronts.
Last year, about 32 food-tech startups shut shop while six have halted operations this year, according to Tracxn, a startup data platform.
A quick look at key developments in food-tech space
Earlier in September this year, Zomato claimed to turn profitable in throughout the 24 countries, where it operates. The Gurugram-based unicorn had hit 3 million orders a month in August while its competitor Swiggy does a little over three million orders in a month.
Zomato and Swiggy had also launched their own cloud kitchens- The Bowl Company and Zomato infrastructure this year.
According to research firm RedSeer, India’s online food delivery market comprising of aggregators and cloud kitchens grew at 150 per cent last year, in comparison to 2015, with an estimated Gross Merchandise Volume (GMV) of $300 million in 2016.