Foodmandu has recently raised an undisclosed amount from Series B funding rounds from Nepal based Investment firm Team Ventures. Earlier True North Associates (TNA) had helped it with the initial funding. In return, Team Ventures gets 20% stakes in Foodmandu via purchasing new shares and a partial buy-out of TNA’s holding.
Nepal’s massive 2015 earthquake could not dampen its spirits, it was shaken and stirred by it, however emerged more determined to succeed. With a renewed vigour and having Augmented Reality (AR) to guide its way, Foodmandu is here to stay and even inspire many other similar startups as well.
As per Manohar Adhikari, CEO , founder of Foodmandu, it will redirect newly acquired funds to expand to other cities and geographies as well.
Founded in 2010 Foodmandu is a pioneer of sorts in the Nepal Food Delivery ecosystem and has seen 10x growth within the last four years. With a very humble beginning, it now claims to have tie-ups with 500 restaurants in Nepal. The Foodmandu market strategy is unique in the way they operate. It has partnered directly with the farmers’ markets and wholesale market removing the middleman in the process. Foodmandu covers the whole spectrum of eatables right from freshly cooked food to fresh vegetables, beverages, and cakes as well. It has a sizeable army of 200 delivery partners to make it happen.
While India’s food delivery marketplace is booming, in Nepal, it has just started to arouse a buzz. New food startups like Foodmario, Bhoj and 911 Food Express have also started to follow Foodmandu’s success model.
As per Nidhaan Shreshtha, investment manager at TNA, Foodmandu’s exit strategy should encourage other new Food startups and investment firms too to look at it as a serious investment ecosystem.
An eye-opening stat on India Online Food Delivery Business. As of 2019, there were as many as 18 million active food delivery users and that number is only going to exceed a staggering 15 billion users by the year 2023. An estimated 12% growth in new users coming online to order food. It shows the changing eating, spending behavior of the public in general.