How ‘Me-Too’ Startups Have Spammed The FoodTech Market In India

When industry veterans in the year 2015 debated on whether ‘hyperlocal’ will be able to replace ‘ecommerce’ in India, one segment that grabbed maximum investor attention was the FoodTech. The reasons were simple – touted to reach $78 Bn by 2018, growing at 16% YoY, it was creating high demand, looked promising for higher returns and obviously showed an option for a profitable exit.

But, as they say – all that shines is not glitter. Soon, the sector became overflowed with ‘me-too’ startups lacking both – differentiation and innovation. The results were obvious. To date, out of the 105 FoodTech startups launched in India, only 58 are active. In past few months, there has been over 37 shutdowns while 9 went off the picture consolidation via M&A route.