Bengaluru-headquartered Ola’s subsidiary, Foodpanda has acquired Mumbai-based cloud kitchen firm, Holachef. The cost of the distressed sale has not been divulged though.
With this deal, Foodpanda will derive Holachef’s founding team, brand name and kitchen equipments. An estimated 67 employees will join Foodpanda including the company’s founders Anil Gelra, Gaurav Srivastava and Saurabh Saxena.
“We aim to build India’s largest cloud kitchen network that will be a major step in further elevating the food experience for our customers,” said Pranay Jivrajka, CEO of Foodpanda.
Holachef catered cooked foods from its in-house chefs and used to deliver across Mumbai and Pune. It had raised $9.6 million from investors like billionaire Ratan Tata, Kalaari Capital and India Quotient before shutting down its operation in April 2018.
Following the acquisition, Co-founder of Holachef Saurabh Saxena said
Our mission with Holachef is to serve incredible food experiences to customers through kitchens with the highest quality and hygiene standards. We are delighted to join hands with Foodpanda to accelerate our mission. We are thrilled to be part of Foodpanda’s and Ola’s passionate team, that is truly changing the food experience for a billion Indians.
The cloud kitchen market in India
The cloud kitchen market in India has around 50 million target consumers in the country. In a $45 billion worth food service market in India, cloud kitchen market takes a share of $200 million. Major food trends like – Healthy/Organic food, vegan/vegetarian, regional cuisine, are driving the industry to explore various segments. This business model promises an upward margin of 25%.
Leading cloud kitchens in India - Some of the other leading cloud-based kitchens in India are FreshMenu, Box8, and Faasos. Generating a revenue of $9.5 million, Faasos is the top player in this space. It processes nearly 25,000 daily orders through its more than 175 kitchen/distribution centres across major cities. While Freshmenu and Box8 with around 12,000 orders per day is generating a revenue of $5 and $4.3 million respectively.
Zomato and Swiggy’s tryst with cloud kitchen
Both the foodtech players have announced Cloud Kitchen projects. In 2017, Zomato launched cloud kitchen operations under Zomato Infrastructure Services. However, it failed to scale it up beyond Delhi. On the other hand, Swiggy’s, cloud kitchen venture - Swiggy Access was launched in November last year and houses over 30 food brands. Apart from Bengaluru, it has managed to scale up in the four metros – Delhi, Mumbai, Hyderabad and Kolkata.