India’s food retailing industry has seen a sharp decline in the past few years, but its future remains bright with new foodstamp trading companies now making a push to capture the growing number of consumers who seek fresh, locally sourced foodstamps and can purchase the products in bulk for their families.
The foodstaple trade in India, which is expected to reach $17.5 billion by 2020, is now worth over $50 billion annually.
According to the Indian Council of Agricultural Research, about $2 billion worth of Indian foodstuff has been sold online through such platforms in the last year.
This number is expected increase to $3.5-$3.8 billion by 2019.
The digital foodstamping platform DigiTicket is currently the country’s largest, with its service offering over 1,200 million users, according to data from online marketplace Foodstamp.in.
It is currently operating in 10 states, and it is currently targeting markets such as Uttar Pradesh, Bihar, Odisha, Maharashtra, West Bengal and Jammu & Kashmir, where it is already operating.
According the company, its aim is to cater to consumers who are seeking fresh foodstamped and can access them in bulk at affordable rates.
With a market cap of Rs 1,000 crore, DigiTickets has already raised over Rs 30,000 in seed funding in the first quarter of this year.
The platform has attracted more than 2 million customers, who can now access the online foodstitution for free.
DigiTickets offers free foodstations to customers who can show proof of purchase and they also offer discounts on various foodstages such as biscuits and pulses.
The portal also offers a portal where users can purchase bulk foodstacks, including fresh fruit and vegetables.
According an analyst at KPMG, the company’s mobile app has seen over 50% growth in the third quarter of 2017, and has seen about 20% growth over the past two quarters.
“While the platform has seen strong growth in recent quarters, its growth has slowed significantly in the recent months as a result of poor user interaction with the portal,” said the analyst.
While DigiPoints has not yet launched in India and it has only been launched in Mumbai, its online foodservice has been gaining traction in other Indian cities, including Bengaluru, Hyderabad and Pune.
“DigiPoints is a new kind of digital foodservice platform which is gaining traction with consumers.
With the addition of a mobile app, consumers can now order and get instant delivery of food at any time,” said Nivedita Rajan, Director of Customer Services, Digidata Group.
“It is expected that Digi Points will be able to expand its offerings in other cities by launching more digital foodservices like foodstation and delivery,” she added.