Devendra Agrawal

Founder & CEO, Dexter Capital Advisors

FoodTech Newsletter

“Online Delivery has been dominated by Swiggy & Zomato in the last few years and they have created a duopoly in the category. Hence we do not see too many players entering this segment. India is a vertically integrated market & some other players like Cab Aggregators have tried to enter the space but have not been able to dent the marketQuick Commerce is the newest area of interest for the VCsPEs where 15-30min grocery delivery is being piloted by the likes of Grofers. Globally this space hasattracted a large amount of VC investment where companies like Getir Gorillas etc have raisedcapitalDisruption in the Food space has been done by a few D2C brands focusing on niche categories like Health Supplements Coffee Ice Creams etc. VC investments will continue to be driven by innovative brands who can create a strong supply chain moat. However FMCG food as a category will always remain an omni channel play as food inherently is an impulse & a basket purchase category.Convenience - Indian consumers will pre-orderorder more in the house to save timeQ (Quick) Commerce - Indian consumers are known to order from the local Kirana stores. If either of the Food tech players solve the supply chain on the last mile delivery this will create a strong MOAT & lead to highercapitalraiseNiche Categories - Rise of online consumption has led to a differentiated buying behavior whereby consumers are prone to more experimentation. hence leading to a creation of new age brands in the Health Supplements Coffee & Ice Cream space“