India's Food-Tech Industry to Grow at 25% CAGR to $8 Bn by 2022-End: Google-BCG report

Rising internet penetration, increasing ordering frequency and favourable consumer disposition are some of the factors driving growth in the Indian food-tech industry that is poised to grow at a compound annual growth rate of 25-30 per cent to USD 8 billion by the end of 2022, a report by Google and Boston Consulting Group (BCG) said on Tuesday.

"Riding on the wave of higher consumption in a growing market and maturing dynamics on the supply side, we expect the industry to grow from USD 4 billion to USD 8 billion in the next three years, a massive 25 per cent growth rate," the report titled 'Demystifying the Online Food Consumer' said.

It added that funding in the food-tech space has grown by 35 times in the past five years.

Macro trends such as rising internet penetration, increasing ordering frequency, favourable consumer disposition, expanding reach in smaller tiers and expanding network of restaurants on food-tech platforms pan-India continue to drive momentum in the industry, the report said.

As a consequence, reach of food-tech aggregators has grown six times from 2017 to 2019. At the same time, consumers are spending more than double the time to explore and order online -- from 32 minutes per month in 2017 to 72 minutes per month in 2019.

The study cited peer or network advocacy (52 per cent) plays a critical role in drawing people to try online food ordering for the first time. This was followed by advertisements (19 per cent) that emerged to be a strong driver in metros and among the higher income groups across the country.

"The food tech industry is nascent but one of the fastest growing in the country... Food tech has now made its presence in greater than 500 cities in India and with consumer confidence growing, there are new opportunities for the players to 'win with the consumer' in an evolving market," Google Director (Travel, BFSI, Classifieds, Gaming, Telco and Payments) Roma Datta Chobey said.

Overall, online spending in India is expected to grow at 25 per cent over the next five years to cross USD 130 billion. The report also flagged the impediments that hinder adoption by consumers.

A fifth of the respondents stated a lack of trust in the app as the main barrier to usage -- they believe that the role and control of the aggregators in the actual food preparation is low.

Delivery charges (18 per cent), food quality concerns (13 per cent) and lack of customisation (10 per cent) were other reasons customers cited for not having experimented with online food ordering so far.

Interestingly, while delivery charge was the top reason for not ordering food online in metro cities; in tier-I cities, lack of trust in apps (29 per cent) emerged as the primary roadblock.

"Food tech start-ups have revolutionised the way Indians eat. There is now a greater demand for healthy, home-cooked meals leading to emergence of new business models like cloud kitchen and meal subscriptions. Ordering food online is now a habit," BCG Senior Partner and Managing Director Abheek Singhi said.

There is large headroom to increase reach, engagement and usage frequency for food-tech apps, he added. PTI SR

Startups Founded by Women Receive Less Funding But Generate More Revenues

Startups founded or co-founded by women receive less investments than the startups founded by men, however women-led startups generate more revenue as compared to their male counterparts, says a report by The Boston Consulting Group (BCG) and MassChallenge, a global network of startup accelerators.

As per the research report article, when women business owners pitch their ideas to investors for early stage capital, they receive significantly less funding. "The investment gap is real and larger than we thought," the report noted.

The researchers analyzed data from 350 alumni companies that had taken part in the MassChallenge program. (MassChallenge provides programming, support, and mentorship for early-stage companies, and its strong programs are designed to support women entrepreneurs.)

The research revealed the following:

• The average startup that had been founded or co-founded by women received $935,000, or less than half the $2.12 million that the male-founded companies had received.



• Despite that funding gap, the women-owned companies had generated more in revenue over a five-year period: $730,000 compared with $662,000.



• For every dollar of funding, the women-owned startups had generated 78 cents in revenue, while those founded by men had generated less than half that amount—just 31 cents.
.


• In this sample, if investors had put the same amount of capital into the startups that were founded or cofounded by women as they had into those founded by men, an additional $85 million would have been generated over the five-year period studied.

“It’s disappointing but not surprising that women get less in startup capital than men,” said Katie Abouzahr, a global research fellow in Women@BCG and a coauthor of the study. “Women-owned companies receive only a small slice of total venture capital funding. But what is surprising is how much more effective women-owned businesses are at turning a dollar of funding into a dollar of revenue: they generate better returns and are ultimately a better bet.”

Related Reading -- 9 Schemes For Women Entrepreneurs In India

According to an another report, nearly 50% of Indian women drop out of the corporate employment pipeline between junior and mid-levels, compared to the average of 29% across Asia.

To recall, India’s $167 billion IT services industry recently got its first female head after 30 years, as Intel Corp. veteran Debjani Ghosh takes over as president of the National Association of Software and Services Companies (NASSCOM) in April.

Speaking about female entrepreneurship in India, an MSME report that 20% of every 1000 MSMEs (Micro, Small and Medium Enterprises) in India are women-owned. Although, in a separate 2016 report on Indian startup ecosystem, presented by Nasscom along with Zinnov, it was revealed that only 9% of Indian founders or co-founders are women.

India’s ranking in women entrepreneurship has always been low, so much so that it has been named in worst countries for women entrepreneurs despite of the fact revealed by a study that women entrepreneurs are better risk takers and enjoy work more than men.

In a seperate 2016-ranking report of World's best cities for female entrepreneurs, Delhi was ranked at 22 place.

Via - GlobalNewsWire

Startups Founded by Women Receive Less Funding But Generate More Revenues

Startups founded or co-founded by women receive less investments than the startups founded by men, however women-led startups generate more revenue as compared to their male counterparts, says a report by The Boston Consulting Group (BCG) and MassChallenge, a global network of startup accelerators.

As per the research report article, when women business owners pitch their ideas to investors for early stage capital, they receive significantly less funding. "The investment gap is real and larger than we thought," the report noted.

The researchers analyzed data from 350 alumni companies that had taken part in the MassChallenge program. (MassChallenge provides programming, support, and mentorship for early-stage companies, and its strong programs are designed to support women entrepreneurs.)

The research revealed the following:

• The average startup that had been founded or co-founded by women received $935,000, or less than half the $2.12 million that the male-founded companies had received.



• Despite that funding gap, the women-owned companies had generated more in revenue over a five-year period: $730,000 compared with $662,000.



• For every dollar of funding, the women-owned startups had generated 78 cents in revenue, while those founded by men had generated less than half that amount—just 31 cents.
.


• In this sample, if investors had put the same amount of capital into the startups that were founded or cofounded by women as they had into those founded by men, an additional $85 million would have been generated over the five-year period studied.

“It’s disappointing but not surprising that women get less in startup capital than men,” said Katie Abouzahr, a global research fellow in Women@BCG and a coauthor of the study. “Women-owned companies receive only a small slice of total venture capital funding. But what is surprising is how much more effective women-owned businesses are at turning a dollar of funding into a dollar of revenue: they generate better returns and are ultimately a better bet.”

Related Reading -- 9 Schemes For Women Entrepreneurs In India

According to an another report, nearly 50% of Indian women drop out of the corporate employment pipeline between junior and mid-levels, compared to the average of 29% across Asia.

To recall, India’s $167 billion IT services industry recently got its first female head after 30 years, as Intel Corp. veteran Debjani Ghosh takes over as president of the National Association of Software and Services Companies (NASSCOM) in April.

Speaking about female entrepreneurship in India, an MSME report that 20% of every 1000 MSMEs (Micro, Small and Medium Enterprises) in India are women-owned. Although, in a separate 2016 report on Indian startup ecosystem, presented by Nasscom along with Zinnov, it was revealed that only 9% of Indian founders or co-founders are women.

India’s ranking in women entrepreneurship has always been low, so much so that it has been named in worst countries for women entrepreneurs despite of the fact revealed by a study that women entrepreneurs are better risk takers and enjoy work more than men.

In a seperate 2016-ranking report of World's best cities for female entrepreneurs, Delhi was ranked at 22 place.

Via - GlobalNewsWire