Hyperpure

A CASE STUDY
ON

“HyperPure: Revolutionizing Zomato’s Farm-to-fork venture”

Submitted by
Devyani Mukherjee
HRD1815324
BALAJI INSTITUTE OF MANAGEMENT AND HUMAN RESOURCE
DEVELOPMENT

Sri Balaji Society (SBS)

Balaji Institute of Management & Human Resource Development
(BIMHRD)

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ACKNOWLEDGEMENT

Words are inadequate to express our deep sense of gratitude to Prof. Dr. Ganesh
Waghmare, Asst. Prof. Dr. Vaibhav Patil, our Case Study Guide, for his consistent
guidance, inspiration and sympathetic attitude throughout the case study work, which we
are sure, will go a long way in our life.
We owe sincere thanks towards Dr. G. Gopalakrishnan, Director of our institute as all
the success is the result of his affectionate encouragement.
We are grateful to our Dean Dr. Col. A Bala Subramanian for his encouragement and
guidance throughout the PGDM course.
We express our sincere thanks to all our staff and colleagues who have helped us directly or
indirectly in completing this project. We are also grateful for the many useful comments and
suggestions provided by reviewers, which have resulted significant improvements in
project.

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Declaration

I Devyani Mukherjee, a student of PGDM (Marketing) program at Balaji Institute of

Management and Human Resource Development, Pune, hereby declare to the best of
my knowledge and belief that the case study entitled, “HyperPure: Revolutionizing
Zomato’s Farm-to-fork venture” Company – Case study on HyperPure” is my original
work. The work does not form part of any other work that has published or submitted
elsewhere.

Place:
Date:

Devyani Mukherjee
HRD1815324

Internal Guide External Guide Institute Director

Dr. Ganesh Waghmare Dr. Kapil Chaturvedi Dr. G.Gopalkrishnan

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Table of Content

SNO. CONTENT PAGE NO

1 Executive summary 5

2 Introduction 6

3 Overview 8

4 Main Content 9

5 Analysis 13

6 Case solution 14

7 Exhibit 15

8 Reference 16

9 Annexure 17

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Executive Summary

In 2017, only 20 percent of the restaurants that were audited by Zomato cleared the
audit test on hygiene standards, thus providing the need for a model like HyperPure.
The company initially started off by giving hygiene ratings to restaurants. However,
something was still missing.
The company noticed that it's not like people don't need to try to do good work. They
just don't know how to do good work. They don't know where to source clean
vegetables from, how to dispose of the garbage or how to actually dispose of their
cooking oil. So, now we've developed almost a full-stack company. At HyperPure, we
source pesticide-free veggies and antibiotic-free meat to provide to restaurants.
Hyperpure allows restaurants shopping for everything from vegetables, fruits, poultry,
groceries, meats, seafood to dairy and beverages. It guarantees to be working directly
with farmers, mills, producers, and processors to source these products.
The plan is to offer the tag of Hyperpure to the restaurants on Zomato's platform who
procure the products from Zomato in order that the purchasers can make an informed
choice. Currently, around 2,200 restaurants buy from Hyperpure.
Thecompanyclaimsthatbyrecyclingandsupplyingcomposttothefarm,it'llbeready to
reduce the value of procuring products from the suppliers which can eventually
reduce the price of food produced by therestaurants.
IfyouattendEurope,eatingoutischeaperthanactuallycookingreception.Indiaisnot there
yet. The shift in favor of the restaurant industry will happen once you are able to price
it under $1 Rs 60-70 per meal. That is a tough challenge forIndia.
Founded in 2008 by Goyal, Zomato is currently present across 24 countries. It claims
to be serving 65 million users monthly across services like restaurant reviews,
restaurant discovery, food delivery and dining out transactions.
Intermsofdelivery,itclaimstoberecording37millionordersonamonthlybasiswith a mean
ticket size of Rs225.
Fornow,themostimportantchallengeforZomatoisgoingtobetheaudit offood.The
company is additionally developing its own tech to form audit cheaper andscalable.

Right now, the company is able to sample 7-8 percent of the goods that we supply to
the restaurants. The aim is to check the maximum amount as possible.

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Introduction
Company Background
In 2013 food was the largest segment in Indian retail industry, valued at $490 billion.
The food segment of the Indian retail market is expected to reach $894.98 billion i.e.
Rs 61 Lakh crore by the end of year 2020. Zomato identifies itself as a food tech
company,notalogisticscompany.Zomatoprovidesacommononlineplatformforthe
restaurants,foodsuppliers,logisticspartnersandconsumers.Zomatohasasocialmedia
presence over Facebook, Instagram and Twitter. Zomato’s global reach spreads over
10,000 and more cities which includes 1.4m restaurants on the e-platform. Out of 24
countries Zomato is market leader in 19 in restaurantsearch/discovery.

Zomato has created new diversification of companies into table reservation, food
delivery infrastructure business, dining out, offering capital loan, Zomato gold
subscriptions, food delivery consulting, event Management, rent out restaurant space,
online food order and delivery, providing raw material supply (Hyper-Pure),
advertisement,etc.Zomatoalsohasascopetoexpandglobally.Zomatohasreachedits break
even by reducing itslosses.

Zomato now has started to acquire other food delivery companies across the globe.
Zomato’s current competitor in the market are Tiny owl, Food Panda, Yelp, Burrp,
TimesCity etc. Yet Zomato has enormous scope to expand across the globe into food
delivery business. In search Engine Optimization, offer wide variety of services,
consulting,financingnewrestaurants,preparingfooddeliveryappforrestaurants,train and
provide skilled manpower, logistics and supply chain services, premium and
customized food delivery services, research, maintaining and publishing database and
facts, backward and forward integration, development and innovation.

In a recent report published by Indian Brand Equity Foundation (IBEF), food was the
largest segment in the Indian retail industry, valued at $490 billion in 2013. The food
segmentoftheIndianretailmarketisexpectedtoreach$894.98billioni.e.Rs61Lakh crore
by the end of the year 2020. About 32 percent of India’s total food market comprises
of the food processing industry, which is one of the largest Industry inIndia and
ranked 5th in consumption, production, export and expectedgrowth.

Though the Indian online food delivery business is in its initial stage, yet having
exponential growth. In India, the organized food business is worth $48 billion, out of
which $15 billion is valued for food delivery. There has been a rapid growth in the
online food delivery business in India, the overall industry is expected to reach a
milestoneof$100billionbusinessby2020.Zomatobeingtheworld’soneofthelargest food
aggregator plays a unique role in improving QAAA scores for the food and
restaurantindustry.ZomatoidentifiesitselfasaFoodtechCompanyandnotalogistics
company. The logistical operations are performed to become a better food tech
company and provide their customers with a superiorexperience.
Zomato provides a common platform for restaurants, suppliers, logistics partners, and
consumers. The site has been ranked 1,210 by Alexa rank in the world and ranked 146
in India as of June 2015.

Hyper- Pure provides sources to Zomato which are pesticide-free clean ingredients,
including dairy, meat, vegetables, and consumables for the restaurants, which accrues
a profit margin of 15%. Ingredients for Zomato are sourced from Farmer Producer

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Organisations(FPOs), which also commissions farmers to specifically produce for the

platform.

Currently Hyper-Pure sources ingredients for 300 restaurants in Bengaluru. In a time

period of 8 weeks, around 2.4 crores worth of orders were delivered. To supply fresh,
cleaningredientstorestaurants,Hyper-PurewasstartedinAugust2018.Thisinitiative
whichisoneofitskindusesatechnologythatisendtoenddrivenplatformandcustom
buildtoprovideonlineaccesstofreshandcleaningredientstorestaurants.A30,000sq. ft
warehouse was built in February 2019 to serve 4,000 metric ton capacity per month,
in Bengaluru to provide the necessities to 2500 restaurants per day. Even a bigger
warehouse of about 4,000 sq.ft of the area was built in Delhi and launched in March
2019.

Through the “HyperPure Inside” tag zomato identifies the restaurants that buy
ingredients from HyperPure which creates trust amongst the users in the food they are
eatingasitiscompletelytraceableandhigh-qualityingredients.AccordingtoZomato, the
worth of Hyper Pure had reached $5 million, however, due to the lack of sufficient
farms to provide clean supplies made the delivery process verylengthy.

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Overview

If someone is a restaurant owner then today's biggest challenge is to operate in a very

unorganizedmarketplace.Whereoneisalwayscaughtupinhagglingandhustlingwith
differenttradersandvendors.Toclearthismess,theyhaveprovidedaone-stopsolution
where everything we can get on one single platform. The larger impact of this is not
onlytogivetheB2Bplatformtoproducersbutalsototransformthem2msupplychain. The no
of people who understands good agricultural practices is very far and few and
producers are also less. Nobody is interested in solving the economic problems of
farmers. What they are trying to do is the kind of ecoculture is growing on the farm so
thatheisbecomingmoreviablewiththeproduct.Thatiswhatisdrivingthesustainable supply
chain, that's the one big problem they are trying to solve here. Only a fewyears ago
products used to come in big plastic bags which is been passed by four hands at
leastandmorefatiguetocarryit.Nowwhattheyareofferingisaccesstoquality,access to
traceability, accessibility to simple things. They are taking care of the quality in
whichcustomersshouldgettheproductasfreshastheycanprovide.Thewarehouseis
attheheartofthebusinessatthispointtheyhave2facilitiesoneinDELHI(30000SQ FT) and
one in BANGLORE (40000 SQ FT). What they have built is the state of the artfully
integrated facility and one of these facilities has about 380 metric tons of food storage
capacity on a daily basis. The way they operate this is good technology and its place.
All owners order on the application available on IOS and android, which allows
themtodriveefficiencyinsupplychainmanagement.Asachefsomemastersarepretty
preciseaboutthequalityofthefoodandsupplyoftheHyperPurejustfulfillstheneeds of the
Kitchens. With perfect quality, hyperPure understood the need in advance.They
motivate the local farmers to grow the best quality products so the final HyperPure
product must serve the best of best. This is just a beginning. The scope is very big and
can impact millions oflife.

Objective
 To study how HyperPure help increase revenue of Zomato.

 To study the challenges faced by “HyperPure”

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Main Content
Leadership
Till last year India’s food-delivery market was at 1 million orders per day, it wouldn’t
be bigger than that. Today, the company has totally flipped and believed it is going to
get about 40-50 million orders per day to build the market, among India’s longest-
running food-technology platforms. The numbers surprise us all the time.

It is such a forthright acknowledgment of adjusting market dynamics that possibly

trigger every innovation at Zomato, enabling it to chart a widespread diversification
plan. When something doesn't go consistent with the plan, Goyal and his team are
willing to travel back to the drafting board to seek out a subsequent business that will
beagame-changer.“Wegetsurprisedeveryday.Wealwaysneedtokeepaneyefixed on the
target which is growth and scale,” said Goyal. “There is not any number yet (to that
scale or growth target).”Goyal had been steadfast in his disapproval against the food-
deliverybusinessuntilacoupleofyearsago,citingitslackofeconomicviability.
Zomato’smonthlycashburnof$17-18millioninthecurrentscenarioisaccruedonthe rear of
this three-year-old business that contributes the utmost revenue share, at over 55%.

So what has changed?

Zomatobelievesitsabilitytocross-sellitsseveralofferingstoacustomerbringsahigh chance
of success at capturing them at any point in the food chain. It believes that a
standalone -delivery business does not make economic justification. Our customer-
acquisition cost is less than that of others thanks to the advertising/listings business.
We keep getting the traffic there and that translates into food-delivery very often,”
explainedGoyal.
Outofthe1.4millionlistingsgloballythatZomatohas,about1,50,000arefromIndia. In
India, the platform sees 22 million users come on board every month who haven’t
tried the delivery service yet. It is this chance that Zomato is looking to convert, albeit
only a fraction, to scale its food delivery business. Every month, about 5% (of the 22
million new users) try delivery which may be a no-cost acquisition for us. So, for us,
(food-delivery) isn't a standalone business. This comes from the ecosystem benefit we
have. So, why not go all-in on this?” reasonedGoyal.

Competitors
India’s food-delivery sector, very similar to its global peers, has been at the middle of
investors’ attention over the past year with copious amounts of capital chasing both
Swiggy and Zomato, as mentioned in exhibit 2.
In the year 2019, both firms have doubled down on spending for a captivedelivery
fleet, mass marketing, discounts for customer acquisition, incentives to
comprehend captive restaurant supply and senior management hires. Industry
sources claim that Zomato’s cash burn for each month at $23-25 million on food-
deliveryalone,buttheadbusiness’monthlyrevenueof$6-7millionhelpstrimthe
company’s total burn to $17-18 million. “For us, the unit economics and price
efficiencythatwedoiswayquiteanyoneelse.So,ifsomebodyelsemustraise
$100 million, we'll fight that with $33 million,”.
Swiggy, which has raised $465 million to date, is in talks to spice up another $900
millionatavaluationofover$2.5billionbecauseitpreparestofeaturehyper-local
deliveries and pick-up and drop servicesmoreover.

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The decision-makers remain out on whether India’s food-technology market has

better growth scope for a logistics-led on-demand business that features food
prominently but not exclusively.
“It is also a trade-off and tightrope walk between scale, unit economics, and
availabilityofcapital.Allseriouscompetitionduringthismarketwillmustmanage
thesethreewell,”saidSanjeevBikhchandani,executivevicechairmanatInfoEdge,
which holds a 27.68% stake in Zomato. “Zomato identifies itself as a foodtech
company and not a logistics company. they are doing logistics soon be a much
better food-tech company and provides its customers with a superiorexperience.”

Hyperpure
Hyperpure by Zomato announces the launch of its farm-fresh and quality multi-
product warehouse in Delhi. Spread across 40,000 sq ft, the warehouse is meant to
provide 5,000 weight unit capacity per month and equipped to serve 3,000
restaurants each day. CEO of FSSAI, Mr. Pawan Kumar Agarwal, graced the
special event in Delhi. Hyperpure by Zomato provides restaurants with fresh and
high-quality ingredients, at competitive prices. Using an end-to-end technology-
driven platform, restaurants can purchase everything from vegetables & fruits,
poultry (including antibiotic residue-free chicken), groceries, meats, seafood, and
dairy;tobeverages,andeveneco-friendlypackaging.TheDelhiwarehouse—first of
three Zomato are launching — gives Hyperpure access to over 35,000 restaurants
listed in NCR on Zomato. This means, through Hyperpure, Zomato won't only be
ready to cater to a good sort of restaurants but also guarantee them quick delivery
times on freshfood-products.
Pawan Kumar Agarwal, CEO, FSSAI said“India's food sector is exclusive and to
confirm that the food servicing sector gets high-quality ingredients, public and
personal sector partnerships are imperative. Food suppliers and aggregators must
make sure of food safety and hygiene and make sure that quality product reaches
the top user. I congratulate Zomato on the role they're playing in building a secure
and hygienic food ecosystem and need them sustained success within the future.”
Dhruv Sawhney, Founder, Hyperpure, said, “Considering the positive response
we’ve received in Bengaluru, our expansion into Delhi may be a a part of
Hyperpure’s natural progression. We are certain that our restaurant partners in
DelhiwillbenefitimmenselyfrombothHyperpure’sofferoffreshandqualityfood
products,moreoverbecausethecompetitivepricingweprovide.weglanceforward to
continuing this journey that gives Zomato’s users access to good food prepared
using fresh andcleaningredients.” Hyperpure works directly with an oversized
network of farmers, mills, producers, and processors, and thoroughly builds and
monitors relationships with the source of every of its products. employing a
technology-driven platform, custom-built for this leg of the food value chain,
restaurantscannowbuyfromonecrediblesourceandhavetheirproductsdelivered
within 12hoursofplacinganorder.thispermitsZomatoto bereadytoprovidethe
freshestproduceavailablewhilecontinuingtomakeaffordability,accessibilityand
convenience around food. By 2020, the corporate plans to open 20 more
warehouses across 18 cities, targeting a combined capacity of 90,000 MT and
700,000 sq. ft. These cities include Delhi, Bangalore, Mumbai, Pune, Chennai,
Hyderabad, Kolkata, Jaipur, Ahmedabad, Chandigarh, Nagpur, Lucknow,
Vadodara, Coimbatore, Kochi, Agra, Goa, and Surat. Launched in August 2018,
Hyperpure by Zomato may be a first-of-its-kind initiative; allowing users to trust
that the food they're eating is formed using fully-traceable, quality ingredients. it's
solving variety of supply-chain problems, simultaneously building amore

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ecological model with plans to integrate rainwater harvesting, and composting for
waste.
Market Penetration
“HyperPure may be a larger revenue business than Gold. In one year, we wish
HyperPure to be the most important food supplier during this country, especially
on clean food,” said Goyal. “But that's an enormous challenge because there'sonly
mostcleanfoodoutthere.it'snotasupply-chainchallengebutagrowingchallenge.
Idon’tknowifanybodyelsehasleverageandskilltotrytotocleanfoodatscale.”
Infact,instepwithZomato,thepriceofmonthlyordersbookedthroughHyperPure
hadtouched$5millionbutthedearthofenoughfarmstosupplycleansupplieshas
delayed the deliveryprocess.
“Zomato may be a platform that brings together food suppliers, restaurants,
consumersandlogisticspartners.Imagineaworldwhereyouanalysedetailedfood
consumption and taste patterns across the world and may intelligently share that
withsuppliers.Theefficienciesandnewbusinessopportunitiesaremind-boggling. This
has never been done before,” Bhatnagar said.
ButwhilesomeofZomato’snewbusinessesmayhavehitthemark,ashiftinfocus
awayfromtheolderandmoresteadysailsoftheshiphavecausedsometurbulence. Once
the largest revenue churner and the most profitable of its businesses, Zomato’s
advertising business, which now accounts for just under 35% of the revenue, saw
a difficult 12-18 months until July with its pace of growth slowing markedly.
“Ouradvertisingbusinessgrewslowlyinthisfinancialyearforalackoffocus.We
hadstoppedhiringinouradsbusinessaswereallywantedtocrackthetransactions piece.
The number of people in our ad sales team is down 20% since last year, but
ouradsrevenueforthisyearstillgrewbyabout20%year-on-year,”Goyaladmitted in
a blog post in April.
But that maybe a wheel soon changing its direction. With a new head for the
business in Rohithari Rajan, along with a renewed team, the business has started
picking up pace again and is growing at 8-10% each month now.
While the share of overall revenue from the business is likely to drop to 22-25%,
Goyal expects its pace of growth to double. This
confidence in the future of the ad business is driven by the next product
innovation that Zomato has begun work on, with an aim to drive more revenue per
advertising click.
The 10-year-old company has signed an open-ended business model contract with
several restaurants on its platform to create a product interface that may revolve
aroundpaymentsorloyaltyinabidtoboostitsoldestand mostprofitablebusiness yet.

BUSINESS MODEL
On Zomato, users can find a restaurant, order food online, reserve tables, browse
throughthemenu,andcustomizetheirorders.Usersinover38citiesofIndiacanorder
foodonlinethroughZomato.OnlinefooddeliverythroughZomatowillbelaunchedin other
markets in the future. Zomato’s product enables restaurants and users to interact with
each other. Targeting an audience between 20 and 40 years of age, Zomato aims to
stay quirky through its list of restaurants categorized in appealing collections
including romantic, value for money, legendary outlets, veggie-friendly, and luxury
dining.Eveninitsadvertisements,itmaintainsajovial,funexperience.Overtheyears,
Zomato has monetized by selling ad space, which is supported by a strong content
platform.ItalsolaunchedZomatoGold,anexclusivemembers’onlyclub,in

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November 2017 that received a tremendous response with over 300,000 paid
subscribers and 2,200 partner restaurants in around six months. In their annual report
FY18, Zomato Gold was labeled as possibly the fastest user subscription program in
the country with a waitlist of 500,000 users. In an interview in September 2018,
Pramod Rao, VP, Marketing, Zomato said, “In terms of the business split, ad sales
currently account for around 70% of revenue, online ordering for around 25% and
Zomato Gold and other businesses for the remaining.”

Future Scope
The company has been building businesses through acquisitions, the company has
acquired Bangalore-based TongueStun Food, an aggregator of caterers and restaurants
forofficecanteensanddrone-deliverystartupTechEagleInnovationsSomeofthegaps we
saw last year we’ve plugged tons of them...Hyperpure was one among them. The idea
is to scale most of them up within the coming year.
Analysts who track the world said that building warehouses could help the corporate
solve the complex logistics and provide chain, especially when it involves procuring
goods from one source at scale and delivering to restaurants as one source.
Thiswillhelpthemwithinthebroaderfoodecosystemandalsofacilitategreatercontrol from
farm/procurement to fork, consistent with Ankur Pahwa, partner, and statesman, e-
commerce and consumer internet, EY India. Other areas of operations that build
teamwork and improve efficiencies are needed to support discounts in the food-tech
business. To improve unit economics you've got to travel deeper into the business and
improve infrastructure usage, better client engagement and lift delivery efficiencies.In
the future, A customer-facing side can also leverage the existing customer base and
hyperlocal presence to significanteffect.
After achieving various milestones and rapid growth, Zomato aims to become the
biggestfarm-to-tablefoodcompany intheworld.Itventuredinto cloudkitchensinthe
mid2018,wherethechefspreparefoodinaphysicaloutletforordersthattheyreceive online.
It invested the first portion of US$ 5 million in Bengaluru- based Loyal Hospitality
exclusively for its cloud kitchen project. Loyal Hospitality plans onsetting up 10,000
kitchens across the country. According to the agreement, these kitchenswill
serveZomato’sordersexclusivelywithabout200kitchensinBengalurualone.Zomato aims
to add new products to its mix and increase its delivery fleet through Runner to boost
the revenue earned from food delivery. According to the Statista Online Food
Delivery report, food delivery revenue presently stands at US$ 91,701 million and is
expected to reach US$ 234,206 million by2022.

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Analysis

Hyperpure’s AAAQ Strategy

Assortment:
With the acquisition of Tonguestun, Zomato entered into the segment of
corporate kitchens with the help of its business listings.

Access:
Delivery and pickup, Zomato has also invested in Bengaluru based loyal
Hospitality that provides ready to move in kitchens for deliveries.

Affordability:
Single serve meals and subscription services like gold

Quality:
HyperPure for raw material sourcing at restaurants

Ansof Matrix

Market Penetration:
HyperPure will be focusing much on its pricing strategy by providing
competitive prices for their offering to explore deep into the market. (refer exhibit 1)

Factors:
 Flexible pricing
 24-hourdelivery
 One stop solution for all kitchenneeds

Market Development:
HyperPureissettoenternewcitiesafteritssuccessinBengaluruandDelhi.By the
year 2020 HyperPure is expected to venture in more than 200 cities across India.
(refer exhibit1)
Factors:
 Mobile Application

Product Development:
Currently the products of HyperPure are procured directly from farmers, in
future it plans to grow its own organic farm produce. Apart from existing product line,
HyperPure provides cutlery along with packaging materials. (refer exhibit 1)
Factors:
 Quality
 Consistency
 Eco-friendlypackaging
 Antibiotic residue freechicken

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Case Solution
Zomato has brought a change in the food Industry with the introduction of HyperPure.
Providing a one stop solution to HORECA by procuring from farms and bring it to the
plates of customer. Though HyperPure has started of pretty well in the Indian Market,
there can be a few more suggestions implemented by them for the expansion in the
future.
1. Do’s anddon’t’s

Food for Thought

What works for HyperPure in its b2b …And what doesn’t

game

 As it started as a food discovery  Food sourcing is a focused game.

and ratings platform, it has
immense stickinesswith
restaurants
 Afoodtechplayerintodelivering
food, Zomato is present across
the food valuechain
 Acquisition of Bengaluru-based
B2BfirmWOTO,laterrebranded
as HyperPure, gives it aheadstart
Zomato is already locked in a
fight for top position withswiggy
 Though there is no cash burn in
this business, food sourcing
business needs loads ofpatience
 Having a good relationship with
chefs- which may be zomato’s
Achilles Heel- is critical inthis
business

2. HyperPureinfuturecanstartitsownfarmandventureintoorganicfarming.
Thoughitcanbeanexpensiveaffair,howeverventuringintoorganicmarket can
prove to be beneficial, as there is demand in organic farmproduce.
3. Thecompanycanalsoplantogatherthewasteproductsfromtherestaurants
which can be converted into compost then supplied tofarms.

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Exhibits
Exhibit 1

Source: https://corporatefinanceinstitute.com/resources/knowledge/strategy/ansoff-
matrix/

Exhibit 2

Source:https://yourstory.com/2018/11/delivery-restaurants-supply-chain-zomato

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Reference

• https://www.forbes.com/sites/forbesasia/2018/12/12/indian-food-tech-zomato-
makes-a-bid-to-transform-itself-into-a-farm-to-fork-company/#32e311e15560
• https://yourstory.com/2019/04/hyperpure-zomato-b2b-farm-to-fork-model
• https://www.moneycontrol.com/news/business/startup/heres-why-zomato-
decided-to-launch-hyperpure-3924061.html
• https://www.cnbctv18.com/startup/inside-zomatos-hyperpure-a-glimpse-into-
the-future-of-food-3214961.htm
• https://www.livemint.com/companies/start-ups/zomato-to-launch-20-
hyperpure-warehouses-in-18-cities-by-next-year-1556565626985.html
• https://trioangle.com/blog/zomatos-hyperpure/
• https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/zomatos-
full-course-strategy-from-supply-to-delivery-and-
more/articleshow/66645881.cms?from=mdr
• https://www.hyperpure.com/

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Date: 2020-02-26

PLAGIARISM
SCANREPORT

0% 100% 605 3871

Content Checked for Plagiarism

In 2017, only 20 percent of the restaurants that were audited by Zomato cleared the audit test on hygiene
standards, thus providing the need for a model like HyperPure. The company initially started off by giving
hygiene ratings to restaurants. However, something was still missing. The company noticed that it's not like
people don't need to try to do good work. They just don't know how to do good work. They don't know where to
sourcecleanvegetablesfrom, howtodisposeofthegarbageorhowtoactuallydisposeoftheircookingoil.So, now we've
developed almost a full-stack company. At HyperPure, we source pesticide-free veggies and antibiotic-free
meat to provide to restaurants. Hyperpure allows restaurants shopping for everything from
vegetables,meats,seafood,fruits,poultry,groceriestodairyandbeverages.Itguaranteestobeworkingdirectly
withfarmers,mills,producers,andprocessorstosourcetheseproducts.TheplanistoofferthetagofHyperpure
totherestaurantsonZomato'splatformwhoprocuretheproductsfromZomatoinorderthatthepurchaserscan make an
informed choice. Currently, around 2,200 restaurants buy from Hyperpure. The company claims that by
recycling and supplying compost to the farm, it'll be ready to reduce the value of procuring products from the
suppliers which can eventually reduce the price of foodproduced by the restaurants. If you attend Europe,
eating out is cheaper than actually cooking reception. India is not there yet. The shift in favor of the restaurant
industry will happen once you are able to price it under $1 Rs 60-70 per meal. That is a tough challenge for
India.
Founded in 2008 by Goyal, Zomato is currently present across 24 countries. It claims to be serving 65 million
users monthly across services like restaurant reviews, restaurant discovery, food delivery and dining out
transactions. In terms of delivery, it claims to be recording 37 million orders on a monthly basis with a mean
ticket size of Rs 225. For now, the most important challenge for Zomato is going to be the audit of food. The
companyisadditionallydevelopingitsowntechtoformauditcheaper andscalable.Rightnow,thecompanyis able to
sample 7-8 percent of the goods that we supply to the restaurants. The aim is to check the maximum amount
as possible. Introduction Company Background In 2013 food was the largest segment in Indian retail
industry,valuedat$490billion.ThefoodsegmentoftheIndianretailmarketisexpectedtoreach$894.98billion
i.e. Rs 61 Lakh crore by the end of year 2020. Zomato identifies itself as a food tech company, not a logistics
company.Zomatoprovidesacommononlineplatformfortherestaurants,foodsuppliers,logisticspartnersand
consumers.ZomatohasasocialmediapresenceoverFacebook,InstagramandTwitter.Zomato’sglobalreach
spreads over 10,000 and more cities which includes 1.4m restaurants on the e-platform. Out of 24 countries
Zomato is market leader in 19 in restaurant search/discovery. Zomato has created new diversification of
companiesintotablereservation,fooddeliveryinfrastructurebusiness,diningout,offeringcapitalloan,Zomato gold
subscriptions, food delivery consulting, event Management, rent out restaurant space, online food order and
delivery, providing raw material supply (Hyper-Pure), advertisement, etc. Zomato also has a scope to expand
globally. Zomato has reached its break even by reducing its losses. Zomato now has started to
acquireotherfooddeliverycompaniesacrosstheglobe.
Zomato’s current competitor in the market are Tiny owl, Food Panda, Yelp, Burrp, TimesCity etc. Yet Zomato has
enormous scope to expand across the globe into food delivery business. In search Engine Optimization, offer
wide variety of services, consulting, financing new restaurants, preparing food delivery app for.
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restaurants, preparing food delivery app for restaurants, train and provide skilled manpower, logistics and supply
chain services, premium and customized food delivery services, research, maintaining and publishing database
and facts, backward and forward integration, development and innovation. In a recent report published by Indian
Brand Equity Foundation (IBEF), food was the largest segment in the Indian retail industry, valued at $490 billion
in 2013. The food segment of the Indian retail market is expected to reach $894.98 billion i.e. Rs 61 Lakh crore
bytheendoftheyear2020.About32percentofIndia’stotalfoodmarketcomprisesofthefoodprocessingindustry, which is
one of the largest Industry in India and ranked 5th in consumption, production, export and expected growth.
Though the Indian online food delivery business is in its initial stage, yet having exponential growth. In
India,theorganizedfoodbusinessisworth$48billion,outofwhich
$15 billion is valued for food delivery. There has been a rapid growth in the online food delivery business in
India,theoverallindustryisexpectedtoreachamilestoneof$100billionbusiness by2020.Zomatobeingthe world’s
one of the largest food aggregator plays a unique role in improving QAAA scores for the food and restaurant
industry. Zomato identifies itself as a Foodtech Company and not a logistics company. The logistical
operations are performed to become a better food tech company and provide their customers with a superior
experience. Zomato provides a common platform for restaurants, suppliers, logistics partners, and
consumers.Thesitehas beenranked1,210byAlexarankintheworldandranked146inIndiaasofJune2015. Hyper-
Pure provides sources to Zomato which are pesticide-free clean ingredients, including dairy, meat,
vegetables, and consumables for the restaurants, which accrues a profit marginof 15%.
Ingredients for Zomato are sourced from Farmer Producer Organisations(FPOs), which also commissions
farmerstospecificallyproducefortheplatform.CurrentlyHyper-Puresourcesingredientsfor300restaurants in
Bengaluru. In a time period of 8 weeks, around 2.4 crores worth of orders were delivered. To supply fresh,
clean ingredients to restaurants, Hyper-Pure was started in August 2018. This initiative which is one of its
kind uses a technology that is end to end driven platform and custom build to provide online access to fresh
and clean ingredients to restaurants. A 30,000sq. ft warehouse was built in February 2019 to serve 4,000
metric ton capacity per month, in Bengaluru to provide the necessities to 2500 restaurants per day. Even a
bigger warehouse of about 4,000 sq.ft of the area was built in Delhi and launched in March 2019. Through
the “HyperPure Inside” tag zomato identifies the restaurants that buy ingredients from HyperPure which
creates trust amongst the users in the food they are eating as it is completely traceable and high-quality
ingredients. According to Zomato, the worth of Hyper Pure had reached $5 million, however, due to the lack
of sufficient farms to provide clean supplies made the delivery process very lengthy. Overview If someone is
arestaurantownerthentoday'sbiggestchallengeistooperateinaveryunorganizedmarketplace.Whereone
isalwayscaughtupin hagglingandhustlingwithdifferenttradersandvendors.Toclearthismess,theyhave provided
a one-stop solution where everything we can get on one single platform. The larger impact of this
isnotonlytogivetheB2Bplatform to producersbutalsototransformthem2msupplychain.Thenoofpeople who
understands good agricultural practices is very far and few and producers are also less. Nobody is
interested in solving the economic problems of farmers. What they are trying to do is the kind of ecoculture
is growing on the farm so that he is becoming more viable with theproduct

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That is what is driving the sustainable supply chain, that's the one big problem they are trying to solve here. Only
a few years ago products used to come in big plastic bags which is been passed by four hands at least and more
fatigue to carry it. Now what they are offering is access to quality, access to traceability, accessibility to simple
things.Theyaretakingcareofthequalityinwhichcustomersshouldgettheproductasfreshastheycanprovide.
Thewarehouseisattheheart ofthebusinessatthispointtheyhave2facilitiesoneinDELHI(30000SQFT)and one in
BANGLORE (40000 SQ FT). What they have built is the state of the artfully integrated facility and one of these
facilities has about 380 metric tons of food storage capacity on a daily basis. The way they operate this is good
technology and its place. All owners order on the application available on IOS and android, which allows
themtodriveefficiencyinsupplychainmanagement.Asachefsomemastersareprettypreciseaboutthequality of the
food and supply of the HyperPure just fulfills the needs of the Kitchens. With perfect quality, hyperPure
understood the need in advance. They motivate the local farmers to grow the best quality products so the final
HyperPure product must serve the best of best. This is just a beginning. The scope is very big and can impact
millions of life. Objective ? To study how HyperPure help increase revenue of Zomato. ? To study the challenges
faced by “HyperPure” Main Content Leadership Till last year India’s food-delivery market was at 1 million orders
perday,itwouldn’tbebiggerthanthat.Today,thecompanyhastotallyflippedandbelieveditisgoingtogetabout 40-50
million orders per day to build the market, among India’s longest-running food-technology platforms. The
numbers surprise us all the time. It is such a straightforward acknowledgment of adjusting market dynamics that
possibly activate every innovation at Zomato, authorizing it to chart a widespread diversification plan. When
something doesn't go consistent with the plan, Goyal and his team are willing to travel back to the drafting board
to seek out a subsequent business that will be a game-changer. “We get surprised every day. We always need
tokeepaneyefixedonthetargetwhichisgrowth andscale,”saidGoyal.“Thereis no numberyet(tothescaleor growth
target).”Goyal had been committed in his disapproval against the food-delivery business until a couple of years
ago, citing its lack of economic viability. Zomato’s monthly cash burn of $17-18 million in the current scenario is
accrued on the rear of this three- year-old business that contributes the utmost revenue share, at over 55%. So
what has changed? Zomato believes its ability to cross-sell its respective offerings to a consumer brings a high
chance of success at capturing them at any point in the food chain. It believes that a standalone -delivery
business does not make economic justification. Our customer-acquisition cost is less than that of others thanks to
the advertising/listings business. We keep getting the traffic there and that translates into food-delivery very
often,” explained Goyal. Out ofthe
1.4 million listings globally that Zomato has, about 1,50,000 are from India. In India, the platform sees 22 million
users come on board every month who haven’t tried the delivery service yet. It is this chance that Zomato is
looking to convert, albeit only a fraction, to scale its food delivery business. Every month, about 5% (of the
22 million new users) try delivery which may be a no-cost acquisition for us. So, for us, (food-delivery) isn't a
standalone business. This comes from the ecosystem benefit we have. So, why not go all-in on this?”
reasonedGoyal.

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CompetitorsIndia’sfood-deliverysector,verysimilartoitsglobalpeers,hasbeenatthemiddleofinvestors’attention over
the past year with copious amounts of capital chasing both Swiggy and Zomato, as mentioned in exhibit 2.
Intheyear2019,bothfirmshavedoubleddownonspendingforacaptivedeliveryfleet,massmarketing,discounts for
customer acquisition, incentives to comprehend captive restaurant supply and senior management hires.
IndustrysourcesclaimthatZomato’scashburnfor eachmonthat$23-25milliononfood-deliveryalone,butthead business’
monthly revenue of $6-7 million helps trim the company’s total burn to $17-18 million. “For us, the unit economics
and price efficiency that we do is way quite anyone else. So, if somebody else must raise $100 million, we'll fight
that with $33 million,”. Swiggy, which has raised $465 million to date, is in talks to spice up another $900 million at
a valuation of over $2.5 billion because it prepares to feature hyper-local deliveries and pick-up and drop services
moreover. The decision-makers remain out on whether India’s food-technology market has better growth scope for
a logistics-led on-demand business that features food prominently but not exclusively. “It is also a trade-
offandtightropewalkbetweenscale,uniteconomics,andavailabilityofcapital.Allseriouscompetitionduring this market
will must manage these three well,” said Sanjeev Bikhchandani, executive vicechairman at Info Edge, which holds
a 27.68% stake in Zomato. “Zomato identifies itself as a foodtech company and not a logistics company. they are
doing logistics soon be a much better food-tech company and provides its customers with a superior experience.”
Hyperpure Hyperpure by Zomato makes public the launch of its farm-fresh and quality multi-
productwarehouseinDelhi.Spreadacross40,000sqft,thewarehouseismeant toprovide5,000weight unit
capacitypermonthandequippedtoserve3,000restaurantseachday.CEOof FSSAI,Mr.PawanKumar Agarwal,
amblished the special event in Delhi. Hyperpure by Zomato provides restaurants with fresh and high-quality
ingredients, at aggressive prices. Using an end-to-end technology-driven platform, restaurants can purchase
everything from vegetables& fruits, poultry (including antibiotic residue- free chicken), groceries, meats, seafood,
and dairy; to beverages, and even eco-friendly packaging. The Delhi warehouse — first of three Zomato are
launching — gives Hyperpure access to over 35,000 restaurants listed in NCR on Zomato. This means, through
Hyperpure, Zomato won't only be ready to cater to a good sort of restaurants but also guarantee them quick
delivery times on freshfood-products.
Pawan Kumar Agarwal, CEO, FSSAI said“India's food sector is exclusive and to confirm that the food servicing
sector gets high-quality ingredients, public and personal sector partnerships are imperative. Food suppliers and
aggregatorsmustmakesureoffoodsafety andhygieneandmakesurethatquality productreachesthetopuser.
IcongratulateZomatoontherolethey'replayinginbuildingasecureandhygienicfoodecosystemandneedthem
sustained success within the future.” Dhruv Sawhney, Founder, Hyperpure, said, “bearing in mind the positive
response we’ve received in Bengaluru, our expansion into Delhi may be a part of Hyperpure’s natural
development. We are certain that our restaurant partners in Delhi will benefit immensely from both Hyperpure’s
offeroffreshandqualityfoodproducts,moreoverbecausethecompetitivepricingweprovide.weglanceforward to
continuing this journey that gives Zomato’s users access to good food prepared using fresh and clean
ingredients.” Hyperpure works directly with an oversized network of farmers, mills, producers, and processors,
andthoroughlybuildsandmonitorsrelationshipswiththesourceofeveryofitsproducts.employingatechnology- driven
platform, custom-built for this leg of the food value chain, restaurants can now buy from one credible source and
have their products delivered within 12 hours of placing an order. this permits.

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But while some of Zomato’s new businesses may have hit the mark, a shift in focus away from the older
andmoresteady sails oftheshiphavecausedsometurbulence.Oncethelargestrevenuechurnerandthe
mostprofitableofitsbusinesses,Zomato’sadvertisingbusiness,whichnowaccountsforjustunder35%of the
revenue, saw a difficult 12-18 months until July with its pace of growth slowing markedly.“Our advertising
business grew slowly in this financial year for a lack of focus. We had discontinued hiring in our ads
business as we really wanted to master the transactions piece. The number of employees in our ad sales
team is down 20% since last year, but our ads revenue for this year still grew by about 20% year- on-
year,” Goyal admitted in a blog post in April. But that may be a wheel soon reversing its direction. With a
new head for the business in Rohithari Rajan, along with a brand new team, the business has started
picking uppace
again and is growing at 8-10% each month now. While the share from overall revenue fromthe business
islikelytodropto22-25%,Goyalexpectsitspaceofgrowthtodouble.Thisconfidenceinthefutureofthead business
is driven by the next product innovation that Zomatohas begun work on, with an aim to
drivemorerevenueperadvertisingclick.The10-year-oldcompanyhassignedanopen-endedbusinessmodel
contract with several restaurants on its platform to create a product interface that may revolve around
payments or loyalty in a bid to boost its oldest and most profitable business yet. BUSINESS MODEL
OnZomato, users can find a restaurant, order food online, reservetables, browse through the menu,
andcustomizetheirorders.Users inover38cities ofIndiacanorderfoodonlinethroughZomato.Onlinefood
delivery through Zomato will be launched in other markets in the future. Zomato’s product enables
restaurants and users to interact with each other. Targeting an audience between 20 and 40 years of
age, Zomato aims to stay quirky through its list of restaurants categorized in appealing collections
including romantic, value for money, legendary outlets, veggie-friendly, and luxury dining. Even in its
advertisements,itmaintains ajovial,funexperience.Overtheyears,Zomatohas monetizedby sellingad
space, which is supported by a strong content platform. It also launched Zomato Gold, an exclusive
members’ only club, in November 2017 that received a tremendous response with over 300,000 paid
subscribersand2,200partnerrestaurantsinaroundsixmonths.IntheirannualreportFY18,ZomatoGold was
labeled as possibly the fastest user subscription program in the country with a waitlist of 500,000 users.
In an interview in September 2018, Pramod Rao, VP, Marketing, Zomato said, “In terms of the
businesssplit,ad salescurrentlyaccountforaround70% ofrevenue,onlineorderingforaround25%and Zomato
Gold and other businesses for the remaining.” Future Scope The company has been building businesses
through acquisitions, the company has acquired Bangalore-based TongueStun Food, an aggregator of
caterers and restaurants for office canteens and drone-delivery startup TechEagle Innovations Some of
the gaps we saw last year we’ve plugged tons of them...Hyperpure was one among them. The idea is to
scale most of them up within the coming year. Analysts who track the world said that building
warehouses could help the corporate solve the complex logistics and provide chain, especially when it
involves procuring goods from one source at scale and delivering to restaurants as one source. This will
help them within the broader food ecosystem and also facilitate greater control from farm/procurement to
fork, consistent with Ankur Pahwa, partner, and statesman, e-commerce and consumer internet, EY
India. Other areas of operations that build teamwork and improve efficiencies are needed to support
discounts in the food-tech business. To improve unit economics you've got to travel

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deeper into the business and improve infrastructure usage, better client engagement and lift delivery
efficiencies. In the future, A customer-facing side can also leverage the existing customer base and
hyperlocal presence to significant effect. After achieving various milestones and rapid growth, Zomato aims
to become the biggest farm-to-table food company in the world. It ventured into cloud kitchens in the mid
2018, where the chefs prepare food in a physical outlet for orders that they receive online. It invested the
first portion of US$ 5 million in Bengaluru- based Loyal Hospitality exclusively for its cloud kitchen project.
Loyal Hospitality plans on setting up 10,000 kitchens across the country. According to the agreement, these
kitchens will serve Zomato’s
orders exclusively with about 200 kitchens in Bengaluru alone. Zomato aims to add new products to its mix and
increase its delivery fleet through Runner to boost the revenue earned from food delivery. According to the Statista
Online Food Delivery report, food delivery revenue presently stands at US$ 91,701 million and is expected to
reach US$ 234,206 million by 2022. Analysis Hyperpure’s AAAQ Strategy Assortment: With the acquisition of
Tonguestun, Zomato entered into the segment of corporate kitchens with the help of its business listings. Access:
Delivery and pickup, Zomato has also invested in Bengaluru based loyal Hospitality that provides ready to move in
kitchens for deliveries. Affordability: Single serve meals and subscription services like gold Quality: HyperPure for
raw material sourcing at restaurants Ansof Matrix Market Penetration: HyperPure will be focusing much on its
pricing strategy by providing competitive prices for their offering to explore deep into the market. (refer exhibit 1)
Factors:•Flexiblepricing•24-hourdelivery•One stopsolutionforallkitchenneedsMarketDevelopment:
HyperPure is set to enter new cities after its success in Bengaluru and Delhi. By the year 2020 HyperPure is expected to
venture in more than 200 cities across India. (refer exhibit 1) Factors: • Mobile Application

2% Plagiarised
Nov 16, 2018 - “Last year, I used to say that India's food-delivery market would be at 1 ... has been at the
centre of investors' attention over the past year with ... “Our advertising business grew slowly in this
financial year for a lack of focus.

https://m.economictimes.com/small-biz/startups/newsbuzz/zomatos-full-course-strategy-from-supply-to-
delivery-and- more/articleshow/66645881.cms

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this confidence in the future of the ad business is driven by the next product innovation that zomato has
begun work on, with an aim to drive more revenue per advertising click. the 10-year-old company has
signed an open-ended businessmodel contract with several restaurants on its...

https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/zomatos-full-course-strategy-from-supply- to-
delivery-and- more/articleshow/66645881.cms

2% Plagiarised
Nov 16, 2018 - ... platform to create a product interface that may revolve around payments or loyalty in
a bid to boost its oldest and most profitable business yet.

https://www.pressreader.com/india/the-economic-times/20181116/page/22

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Product Development: Currently the products of HyperPure are procured directly from farmers, in future it plans
to grow its own organic farm produce. Apart from existing product line, HyperPure provides cutlery along with
packaging materials. (refer exhibit 1) Factors: • Quality • Consistency • Eco-friendly packaging • Antibiotic
residue free chicken Case Solution Zomato has brought a change in the food Industry with the introduction of
HyperPure. Providing a one stop solution to HORECA by procuring from farms and bring it to the plates of
customer. Though HyperPure has started of pretty well in the Indian Market, there can be a few more
suggestions implemented by them for the expansion in the future. 1. Do’s and don’t’s Food for Thought What
works for HyperPure in its b2b game …And what doesn’t • As it started as a food discovery and ratings
platform, it has immense stickiness with restaurants • Food sourcing is a focused game. Zomato is already
locked in a fight for top position with swiggy • A food tech player into delivering food, Zomato is present across
the food value chain
Though there is no cash burn in this business, food sourcing business needs loads of patience • Acquisition of Bengaluru-based
B2B firm WOTO, later rebranded as HyperPure, gives it a headstart • Having a good relationship with chefs- which may be
zomato’s Achilles Heel- is critical in this business 2. HyperPure in future can start its own farm and venture into organic farming.
Though it can be an expensive affair, however venturing into organic market can prove to be beneficial, as there is demand in
organic farm produce. 3. The company can also plan to gather the waste products from the restaurants which can be converted
into compost then supplied to farm.

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