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Yumist shuts down as investor interest in food-tech space fades

Online food ordering startup Yumist has closed down its operations as the company was unable to raise further capital. "(From) 2016 onwards, food tech (in the manner the term is loosely used) had amassed a notoriety with investors and media and became almost a dirty word. We failed in all our attempts to fundraise since then, as investors wanted to wait it out," Yumist's founders Abhimanyu Maheshwari and Alok Jain said in a blog post. Yumist had raised pre-Series A funding worth $2 million led by Unilazer Ventures, with participation from existing investor Orios Venture Partners and Steven Lurie, a Silicon Valley based investor back in 2015. The company had raised seed funding worth $1 million from Orios Venture Partners in 2014. The company served lunch, snacks and dinner items made in its kitchens and starting at Rs 65, with a delivery time of 30 minutes. Yumist acknowledged that this was one of the internal factors which affected the company's profitability. "There was a time in early 2015 when our bikers had hot meals with them basis a demand prediction algorithm and orders were delivered within 15 mins. We delivered one such order in 2 mins and the customer’s expression was priceless, but our P&L had a different sort of expression," the blog said. Number of orders Yumist said that it was seeing 70 orders a day and it had an average order value of Rs 190 and they were making a margin of Rs 65 in March 2017. The company's cost of acquiring new customers was Rs 180 but it said…

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