Asia 2016: Food tech startups in for big churn, fierce competition & tougher fundraising

When it comes to food delivery companies, 2015 was the year they broke out and made an impact on lives of people, at least those living in urban areas of Asia. And India, where startups in the sector were christened ‘food tech’, was the biggest market for them, and also the place where the food tech guys had truly arrived.

Rise in funding and trouble in India

From raising significant rounds of funding to expanding to more cities, they did it all. However, not all of them did a good job of managing it. Tiny Owl, which raised $26.8 million in funding and quickly spent it to expand to more cities, ran into employee revolt where one of the founders was held hostage in his own office until the police came to the rescue. The company struggled to pay its employees. For its founders, raising funds was relatively easy but they lost their way spending it.

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