Less than two weeks after Zomato acquired last mile logistics startup Runnr, the restaurant listing and food delivery company has now invested an undisclosed amount in Hyderabad-based home-cooked meals startup Tinmen. Zomato’s founder and CEO Deepinder Goyal said that this investment was part of its long-term plan and that they “are working on a bunch of exciting tech-led initiatives to build better accessibility to great and hygienic food for our users. In tandem we are also exploring alliances with existing players, big and small, to help surface a larger variety of healthy meal options to our users.”
Who doesn’t crave home-cooked food? Precisely why we are investing in @tinmenapp.
For more details: https://t.co/mlWmKtNBgh
— Deepinder Goyal (@deepigoyal) September 25, 2017
In January last year, Tinmen had raised an undisclosed amount of angel funding from Lead Angel Network. At the time, the company had said that the funds will be used to expand within Hyderabad and to other cities in the country. Tinmen currently delivers to 10 major localities in Hyderabad, including Gachibowli, Financial District, Kondapur, Hitec City, Madhapur, Jubilee Hills, Banjara Hills, Punjagutta, and Begumpet. Apparently, they are already delivering over 30,000 orders a month. Tinmen is available on both Android and iOS.
How it works?
Once you’ve installed the app, you simply need to select diet preference (veg+non-veg, non-veg only or veg only), cuisine preference (South, North, Andhra, Tamil, Punjabi, Rajasthani, Marathi, Bengali, Hyderabadi, Salads, and Continental), and finally select your preferred dishes for the entire week – both lunch and dinner.
The usual payment options are available – credit/debit card and net banking. There’s also the option to pay via mobile wallets – Freecharge, MobiKwik and Ola Money.
Home cooks can register with Tinmen as a chef. They will need to send some samples of dishes cooked by them, and if the team at Tinmen like it they will be brought on board. Tinmen also offers special plans for companies to order meals for employees. More on this here.
Runnr acquisition: “With the combination of Zomato and Runnr, we have everything in the stack of building a delightful food delivery service in India and UAE — end to end — listings, discovery, reviews, ordering, and now, logistics,” Goyal had said following the acquisition of Runnr. Runnr will continue to function as an independent logistics company, offering its logistical services to players other than Zomato as well like pharma, grocery, e-commerce, etc. “This will ensure that the delivery fleet capacity that we build operates on a positive unit economics level while serving the mega-peaks in the food delivery business.”
Zomato’s food delivery business
The company had reported food ordering revenues of $9 million for the financial year ended 31st March 2017 (FY17), around 8 times of FY16. In its earnings conference call last year, Deepinder Goyal had said that there are three players in restaurant food delivery in India, and he doesn’t think they have more than 6 to 9 months left; this was in response to a question about the few food delivery players which had faced issues in 2015.
During its call for earnings in FY16, Goyal told that 7% of Zomato’s revenue in India was coming from its food delivery business, and the monthly growth rate in order business at that time was at 30% with a daily average of 25,000-26,000 orders. At that time, of all the orders, 80% were delivered by restaurants, and 20% were delivered by Zomato through its logistics partners.