Badhaan
B2B food tech startup which uses technology to solve India’s restaurant owners’ problems
Official Website
₹6 Cr
Total Round Size
Equity
Mode
₹5 Lacs or USD equivalent.
Minimum Ticket Size
₹34 Cr (Pre-money)
Previous Rounds Details
- Angel Investment (HNIs) + India Accelerator (IA): INR 90 L
- MeitY Samridh Equity Fund: INR 40 L
About the Opportunity
Company Overview
- Opportunity to invest in a revolutionary B2B food tech startup which uses technology to solve India’s restaurant owners’ problems in procuring raw materials, reduce pilferage & wastage and increase their profitability.
- Opportunity to invest in a dynamic food tech startup changing the Opex Model of Food Businesses in India
- Procurement suite (Primary Business Line): Allowing food businesses to procure raw materials at smaller MoQs and improving their wastage quotient by 15%, Pilferage Index by 10% and manpower costs upto 12%
- Distribution system and supply chain setup and optimized for restaurant SKUs
- Target Cuisines: Regional cuisines covering 90% of the market and tier 2 cities
- Technology in Sourcing: AI and Statistical data processing powered QA to control the quality for Agricultural Commodities. (50% of Restaurant SKUs are agricultural commodities)
- Private Labels: Chefs prefer a consistent quality and branding for primary products such as Rice and Oil. Badhaan’s private labels provide a long-term acceptance and retention from its customers
- Micro Credit Structure: Low risk credit engine with underwriting driven by customer repayment data, cuisines and ticket size (Typically 5k – 15k credit limit)
- Value Added/Additional SaaS products: SME restaurants prefer a minimal setup billing system to track customer and kitchen orders. Badhaan provides a mobile first SaaS for such customers
- Market Size: The Restaurant and Bakery market alone is $100 Bn market in India and growing at 12% CAGR. The growth rate of restaurants in Tier 2 cities is at 22% CAGR with an increasing disposition to dining out and growing income levels. The market penetration by organized players in restaurant supply chain is <5% and primarily in Metro Cities. Majority of restaurants procure raw materials locally
- Target Customers: Badhaan’s customers entail both the SME restaurants as well as well-known chains. Example chains include: Wow Momo, Minerva Group, etc.
- The company has minimal CAPEX costs and is primarily Opex driven, with a repeatable and scalable set of processes and systems in Sales, Procurement, Collections and Financial Reporting
- Badhaan’s high investability quotient comes in the potential to:
- Directly replicate the current proven model and processes 100x in a short span of time
- Superior ROI on Customer Acquisition Cost (CAC) that allows very fast growth possible
- Blue Ocean: Minimal competition in restaurant supply chain (especially in T2 Cities and huge potential for scale.
- We are looking for the next growth horizon with the current fundraise to target an annual GMV of 50Cr+ in next 3 years as well as complete critical technology advances to become a growth power horse
Team
- First Co-founder (Vishnu) is an MBA from MDI Gurgaon, BTech from IIT Hyderabad and comes with more than a decade of strong business functional experience in Management Consulting, Product management and business development.
- Second Co-founder Rajesh), passed out from IISc Bangalore and comes with 24yrs of industry experience in Quality, Process Excellence and Operations in GE, Rolls-Royce and last job as Chief of staff of a technology organization at JPMorgan Chase & Co.
Business Model
- Sale of Raw Materials directly to restaurants at a price arbitrage – Primary Revenue Channel
- Franchise Wholesale partners: Distributors of Badhaan’s Private Labels to smaller restaurants – Piloted in 2 areas of Hyderabad
- Mobile First Billing SaaS (Need to basis currently)
Current Business / Market Opportunities / Traction
- Market Size: The Restaurant and Bakery market alone is $100 Bn market in India and growing at 12% CAGR. The growth rate of restaurants in Tier 2 cities is at 22% CAGR with an increasing disposition to dining out and growing income levels
- Total GMV in FY 23-24: INR 4.1 Cr
- Gross Margin: 9%
- Operational Margin: 25% (Target of 50% in next 2 months)
- Number of Outlets Onboarded: 500 (At least one confirmed order).
- Customer Acquisition Cost (CAC): INR 2 K
- ROI on CAC (1 Year period): 300% – Net Profit
- Customer LTV (Net Profit): INR 50 K
Summary
Total Round Size: INR 6 Cr
Open for SAN Angels: INR 50L – 1 Cr
Minimum Ticket Size: INR 5 Lacs or USD equivalent
Valuation: INR 34 Cr (pre-money); post-money INR 40 Cr
Mode (CCPS / Equity): Equity
Details of commitment received for this round: