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At
a time food tech startups are scaling down their business due to cost
constraints, Bengaluru-based online restaurant Petoo is treading a
slow but cautious path of expansion. The company, currently present
in select locations in Bengaluru, is looking to expand to five cities
in 2016.
Latest
News it has been operating at 13 locations in the city and last
week expanded in six more locations.
The
six-month-old company is in final talks of raising about $5 million
which will be used for the expansion. The company that works on a hub
and spoke model currently has a kitchen in Bengaluru, which it is in
the process of converting to a food factory.
"We
are planning to take food preparation to a larger scale so that there
is little difference in the taste that is being delivered to
different parts of the city. The equipments for the food factory will
be designed and developed in-house," said Kumar Setu, co-founder
of Petoo.
Through
the six months after Petoo Online
Restaurant began its operations, there has been a lot of learning
on what worked well in the food-tech space, said Setu. "The
major lesson we had was in the logistics space."
Initially,
Petoo delivered food boxes only through its own team of delivery
boys. However, it has now opted for third-party delivery partnerships
with hyperlocal logistics startups like Opinio and Road Runnr. As a
result, the six-month old company claims to have brought down its
delivery cost from Rs 170 to Rs 53.
Petoo's
co-founder Ritesh Dwivedy was also the co-founder of Just Eat that
was later acquired by Rocket Internet.
Currently,
the company delivers more than 1,000 orders per day and is growing at
about 120% month on month. It has a team of about 65 including in
operations, kitchen, technology and marketing.
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