Wednesday, 9 March 2016

Innerchef acquires EatOnGo and Flavour Labs

Food technology start-up Innerchef, which operates in the ready-to-cook and ready-to-eat meals segment has acqui-hired two food startups, Flavour Labs in Gurgaon and EatOnGo in Bengaluru, signaling further consolidation in the food tech segment starved of cash after investors clawed back on investments late last year.
Acqui-hiring is essentially done for the target company talent pool more than its products and services. The acquisition of Flavour Labs, a food truck company, will help Innerchef enter the mobile kitchen segment, while EatOnGo, which specializes in breakfasts, will help the company expand its presence in Bengaluru. EatOnGo was launched in May 2015 while Flavour Labs started its operations in 2014.

In September last year, Innerchef had raised Rs. 11 Crore in a pre-series A funding round from a clutch of investors including redBus and Paytm founders. Apart from ready-to-cook and ready-to-eat meals, Innerchef operates a Hyperlocal marketplace for desserts sourced from home bakers and bakeries in Delhi, Gurgaon and Bengaluru.

Several food tech start-ups have shut shop following a slowdown in investment while some have been acquired by well capitalized rivals. While Internet first kitchen SpoonJoy was bought by Hyperlocal delivery startup Grofers, another startup Dazo shut shop the same month. Bigger Businesses such as Zomato and TinyOwl have pruned their workforce last year.

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