While it seems that only Swiggy and Zomato have been contesting in the food delivery space in India, they seem to have a new competitor from hospitality major Oyo Rooms.
The company is seeking a significant investment in cloud kitchen startup FreshMenu, as per a Mint report.
Oyo has raised funds around $1 billion, largely from the Japanese investor Softbank. Whereas FreshMenu has been seeking funding to the extent of $25 to $30 million.
There are no confirmations right now but the negotiations are underway.
Although by arriving into food department, Oyo is trying to solidify its position in the hospitality sector.
FreshMenu has been last valued between $40 to $50 million. Contrarily, OYO is a giant carrying a valuation tag of $5 billion.
The company’s spokesperson has mentioned that F&B already contributes about 25% of its revenue in the hospitality business. However, he did not confirm the FreshMenu acquisition.
After taking the charge of the cloud kitchen, Oyo will be set to start deliveries and take on the biggies, Swiggy and Zomato.
Notably, like many Indian startups, there is a mutual investor for both Oyo and FreshMenu. Here the facilitator’s part is played by Lightspeed Venture Partners.
Lightspeed previously invested in FreshMenu in one of their first rounds, of $5 million in Series A.