Chef Sanjeev Kapoor funded food delivery startup ZuperMeal shuts down
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Mumbai based food delivery startup ZuperMeal has apparently closed down its operations eight months after it raised seed funding. The ZuperMeal app, when downloaded, is showing an error message. The website of the firm is also not working.
ZuperMeal, a platform that enabled home cooks to become home “chefs” and market their signature dishes to the customers, received investment from Ravi Saxena and celebrity chef Sanjeev Kapoor along with two foreign partners who will collectively invest $2 million.
The development is yet another reminder of the grim situation that the food-tech sector finds itself in with investors not inclined to fund startups with high cash burn rate.
Earlier this month, Mumbai-based food ordering app TinyOwl had temporarily withdrawn its services in all cities except Mumbai, which was driven by struggling to restructure its business for several months.
Mobile app Zeppery which allowed users to pre-order food at restaurants and other food outlets also closed down operations in May.
This month, Gurgaon-based startup, MealHopper had stopped taking orders on its website and app as it faced financial constraints and operational difficulties.
In March, Bangalore-based online meal service provider iTiffin.in has stopped taking orders and advised employees to look for jobs, in yet another reminder of distress in the food-tech sector despite new ventures continuing to raise funds.
This week, Zomato in a latest bid by the company to cut costs, amidst rising losses, has rolled back its operations from 9 countries out of 23 overseas market, reducing its operating costs to $1.7 Million, a 81% drop from earlier $9 Million.
The Mumbai-based startup connected home chefs to consumers via its app. It had claimed to have 150 homemakers on its platform to cook 60 to 70 meals a day, at a net margin of 15%.
There have been other startups which managed to raise funding.
Bangalore-based Swiggy, has raised an additional $7 Million (INR 47 Cr) from its existing investors Norwest Venture Partners, DST Global and Accel Partners. Swiggy’s valuation has increased as the company raised this funding round at a valuation of $130 million.
Petoo, a Bengaluru-based startup in the online restaurant space, raised $10 million in Series A funding to scale up its business.