- Funding in food tech startups more than doubled to $1.3 billion in 2020.
- Logistics startups raise $965 million in 2020.
- Funding in food tech startups such as Licious, FreshtoHome, Zomato, and Swiggy.
- Logistics startups like Delhivery and Ecom Express raised $965 million.
Food and logistics startups raise significant funding last year. The pandemic spurred a surge in demand for online delivery of fresh and ready-to-eat food and quick logistics service. Funding in food tech startups such as Licious, FreshtoHome, Zomato, and Swiggy more than doubled to $1.3 billion in 2020 from $619 million in 2019, according to appears. Logistics startups like Delhivery and Ecom Express raised $965 million last year.
Food Startups Witnesses a Funding Boom
The food segment is expected to follow the high growth runway & attract more capital as startups continue to expand their reach & add more restaurants, cloud kitchens. As the legacy supply chain models failed to supply transparent rates, The increased demand for both non-essential & essentials items was catered by tech-aided logistics players. Funding in food tech startups such as Licious, FreshtoHome, Zomato, and Swiggy more than doubled to $1.3 billion in 2020 from $619 million in 2019.
Food delivery platforms, too, witnessed a surge in orders as people stayed indoors amid covid-led restrictions. Gurugram-based food tech unicorn Zomato raised $660 million at a valuation of $3.9 billion as the firm set its sights on an initial share sale this year. FreshToHome is a Bengaluru-based online fresh fish and meat retailer. The company is adopting digital payments, digital feedback, and technology to communicate with their customers in daily operations. Recently, it raised $121 million led by the Investment Corporation of Dubai.
Logistics Startups Witnesses A Funding Boom
Logistics startups like Delhivery and Ecom Express raised $965 million last year. Edtech mopped up $2.1 billion, the highest of all sectors, against $426 million in 2019, largely led by Byju’s, which raised over $1.25 billion.
However, e-commerce usually bags the bulk of the funding. But, it saw a dip in 2020, raising only $779 million. This was less than a fourth of the $3.3 billion raised in 2019. This, in resentment of the fact that the sector became highly competitive with aggressive strategies from giants such as Amazon, Flipkart, Myntra, and Snapdeal.