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Ratan Tata-backed Holachef is hoping to become profitable and achieve a Gross Merchandise Volume of ₹50 crore this year. It is also considering opening food outlets in Mumbai.
The two-year-old food-tech player has been cautious while taking its operations to new markets, since most start-ups have folded up or are struggling in this category.
Saurabh Saxena, CEO and founder, Holachef, said: “This year, we are looking forward to getting healthy margins and breaking even in the next six months. With a GMV of ₹36 crore, we are not looking at Series C funding, and will be consolidating our operations in Mumbai.”
Having raised ₹40 crore in two rounds through investors such as Kalaari Capital and SIDBI, Holachef is now focussing on reducing burn rate and improving operating margins.
“Our operating margin is currently 10-15 per cent; we have to take it up to 20-25 per cent to achieve break-even,” Saxena said.
Competing with food aggregators such as Swiggy and Zomato, along with a host of others such as FreshMenu, food-tech has not been an easy business for most.
“Being an end-to-end solutions provider with a full-stack model helps in taking care of the blind spots. Margins are better compared with food aggregators, who do not necessarily control the supply chain,” said Saxena.
Having created a niche with Indian cuisine, Holachef is now expanding its menu with global offerings.
Inputs from investors such as Ratan Tata (with a less than 10 per cent stake) has also come in handy for the start-up.
“Ratan Tata understands hospitality, and has been insisting on better delivery time and customer satisfaction. He has been giving inputs for strategy and direction, and expects us to promptly resolve all customer-related issues,” he said.
With 21 chefs on board, Holachef has centralised kitchens across Mumbai. “The chefs are on our payroll and get fixed salaries and incentives, and work across the 15 kitchens that are distribution hubs for Holachef.” he said.
“While we are planning to take up our centralised kitchens from 15 to 20 this year, we are also considering having food outlets in the city.”
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