Wednesday, October 4

FoodTech Firm Faasos to Foray into the Middle East Market

The food on demand platform Faasos is reportedly foraying into the international market starting from Dubai. The company has plans of seeking to capture the next leg of growth. Faasos Food Services, which operates the brand Faasos, is gearing up to establish its first batch of multi-brand cloud kitchens in Dubai.

By the first quarter of 2019, the company is expecting to have three kitchens operational in the city. These will witness the venture launch its brands Faasos, Behrouz Biryani, Oven Story and Firangi Bake in the Middle East.

“We test new brands with limited locations within our existing kitchens. We only scale those brands that we know are being liked by users and where economics are working. The good thing is that our kitchens become profitable in the second month itself and so we will be profitable by FY19-end at an EBITDA level,” said CEO Jaydeep Barman.

Talking about the financial details, the firm claimed to end the year 2017-18 with Rs 147 crore in net revenue and cut its loss by half from FY17, when it clocked a loss of Rs 82 crore. On an operational basis, the foodtech company expects to be profitable by the end of 2018-19. It is expecting to close fiscal year 2018-19 with Rs 300 crore in net revenue.

Faasos Food Services claims to have 30,000 orders daily, over half of which are driven by the Faasos brand. With an average order value that is double that of Faasos, Behrouz Biryani is likely to overtake Faasos and become the biggest brand for Faasos Food Services gradually.

“In every sector globally, like hospitality, ride-hailing, etc., an internet company has become the most-valuable company taking over from its offline peers. But in restaurants, globally it is still McDonald’s. As the world’s largest multi-brand cloud kitchen company, this is what we are trying to change by creating restaurants on the internet,” said Barman.