Good morning folks, TGIF! It's been a while since I wrote all 5 newsletters in a week but we made it. This week's news has been a little venture heavy (maybe subconsciously since I've been thinking & writing about the space lately) and we've got some more news today- Prime Venture Partners has a new member on their investment team. And Cure.fit is finally killing off their cloud kitchen vertical in several cities.
➡️ Food delivery cos & cloud kitchens have been struggling with the global pandemic and it has resulted in fitness company Cure Fit killing it's cloud kitchen biz in several cities as orders have fallen 80%.
➡️ The company is no longer operating in major cities like Delhi, Mumbai & Chennai but currently is still operational in Bengaluru, Hyderabad and Coimbatore (for now). Even Swiggy and Zomato have see a fall in daily orders and Swiggy scaled down their cloud kitchen 40-50% as a result of it.
➡️ Eat fit (which sells through the Cure Fit app & Zomato) was clocking 35,000 daily orders in February but in the last two months that has fallen below 5000. The company also let go of 70% of the workforce looking after the cloud kitchen vertical.
➡️ The company had also started selling groceries online (this was the previous pandemic fad before the short-video craze kicked off). But even that isn't probably a long term product line for the company (with BigBasket, Grofers, JioMart, Dunzo, Swiggy and countless others, why would someone buy groceries from Cure Fit).
➡️ With food delivery cos probably not recovering for a while, this probably doesn't bode well for the remainder of Cure Fit's cloud kitchen operations. If demand doesn't recover, at some point the company will have to think about selling or shutting down operations completely and focus on core product lines.
2. https://bit.ly/30RBoQK: Veteran Indian investor Ashish Gupta joins Prime Venture Partners
➡️ Early-stage firm Prime Venture Partners announced that veteran investor Dr Ashish Gupta has joined the firm's investment team as Partner Emeritus. Ashish will be a part of the firm's investment committee and will be involved in the decision making process of all future investments.
➡️ Ashish is probably one of the best known figures in the Indian startup industry, spanning back to being part of Junglee which was acquired by Amazon back in 1998. He is also the co-founder of Helion Venture Partners (arguably one of India's first few venture firms) and serves on the boards of companies such as Ezetap, Simplilearn, Naukri.
➡️ Some of his other past investments include Qwikcilver, MakeMyTrip, Redbus (all companies that have exited!). Ashish has known all the partners at Prime for several decades, having worked or studied together.
➡️ Prime was started in 2012 by Shripati Acharya, Amit Somani, and Sanjay Swamy and has since invested in over 25 companies in various sectors including companies like NiYo, MyGate & (my personal favorite) Quizizz.
➡️ Having a investor like Ashish would certainly be helpful for a lot of Prime's portfolio's companies, who probably haven't gone through an economic downturn before.
Feedback & ❤️ always appreciated BONUS (Tweet of the day): https://twitter.com/BeingPractical/status/1293966603189514240
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