After the massive surge in the food delivery business, the B2B segment of food delivery and management appears to be receiving attention. While the two major entities, Swiggy and Zomato have their own play in the segment, Paytm is planning to gain entry into the segment by making an investment in Hungerbox. An Economic Times report indicates that the size of the investment could be around $15 million and that some of the existing investors in Hungerbox may pitch in as well. Once the deal is completed Hungerboxâ€™ app may get integrated with the Paytm app, adding one more service on its platform.
Hungerbox has an app that employees in large corporate organisations can use to view all the details of the food vendors available on their premises, the respective menus and they can place orders for their lunch/dinner through the app. The app is quite dynamic in its own way. They count among their customers, companies like Qualcomm, Microsoft, Accenture, and McKinsey.
Coming back to Hungerboxâ€™ investors, Neoplux and Sabre Partners participated in the companyâ€™s Series A funding. Lionrock Capital and Infosys co-founder Kris Gopalakrishnan are also investors in Hungerbox. Should the deal go through, Paytm will be joining these investors. The business offers a high frequency in terms of orders, though it may taper off during the weekends, unlike the B2C segment, where the reverse happens.
As mentioned, Zomato took over TongueStun Food which was into the office catering business and Swiggy has its inhouse Swiggy Food Court, again aimed at corporate catering.
The IT sector predominantly has large campuses where typically 4000-5000 employees are housed. These complexes have allotted space for restaurants to set up food outlets offering a variety to their employees. The food order delivery apps make it easy for the employees to choose the food they want to eat from their workplaces and then hop across to take a quick bite or to have it delivered to where they are. In many of these, the payments are linked to the employers-issued cards with food credit in them. The investment in Hungerbox by Paytm will definitely add value to the app in the long run.