Food delivery startup Zomato launches Zomato Wings to help restaurants procure funding
- ByTejika Bajaj | December 1, 2021
The online food delivery app Zomato recently announced the launch of its new venture ‘Zomato Wings’ which aims to help potential profit making restaurants procure funding for their venture. The startup would not be investing in these restaurant chains but would act as a facilitator for fundraising to ensure that there is no conflict of interests.
This initiative comes during a time when the investment in cloud kitchens and restaurants is marginal as compared to other segments due to the Covid restrictions and the inherent uncertainty of the environment.
Talking about the recent initiative undertaken by the food-tech startup, Deepinder Goyal said, “While some large chains have attracted investors, we have barely scratched the surface—in the last three years, only about 25 restaurants and cloud kitchens saw Series A or larger equity funding rounds, as per (industry tracker) Tracxn. By curating a set of restaurants and cloud kitchens that could become rocketships if fuelled with equity capital, we hope to build the go-to platform for venture capital firms, angel investors, family offices, etc., that are looking to make private investments in restaurants and cloud kitchens.”
The ‘Wings’ team would consist of four members who are a part of the supply chain team of the startup. They would be responsible for overlooking all the deals undertaken. The team would select restaurants and cloud kitchens to position their story metrics and connect them with the right investors. The role of Zomato would be restricted to that of a consultant and mentor as it won’t dive into the realm of investment.
The food delivery app is aiming to help 100 restaurants procure funding within the next three years.
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