In the ever-evolving landscape of India's fast-food industry, Faasos stands as a pioneer, seamlessly blending traditional flavours with modern convenience. Owned by the online restaurant unicorn Rebel Foods, Faasos has carved a niche for itself by redefining the food delivery experience. Let's delve into the intriguing journey of Faasos, from its humble beginnings as a Calcutta Roll store in Pune to becoming a prominent player in the online food ordering business.
Faasos' Rise to Prominence
Established in 2011, Faasos quickly became synonymous with on-demand food service, leveraging technology to meet the evolving needs of Indian consumers. The introduction of their mobile app in 2014 marked a significant stride, enabling customers across the nation to access a diverse menu of wraps, rolls, Frankies, and other delightful Indian food items.
Headquartered in Mumbai, Faasos operates 160+ kitchens across 35+ Indian cities, showcasing its commitment to serving customers with speed and efficiency. What sets Faasos apart is its unique position as the only company in India operating across all three stages of the food on-demand business: ordering, distribution, and order fulfilment.
The Faasos Cloud Kitchen Model
Faasos' success is intricately tied to its innovative cloud kitchen model. The company operates under Rebel Foods, offering various in-house brands like Oven Story, Kettle&Eggs, Behrouz, and Firangi Bake. This hyperlocal approach allows Faasos to run a multi-brand kitchen efficiently, utilising common ingredients and staff to fulfil orders from different brands within the same kitchen.
The business model, inspired by Domino's, emphasises proximity to customers, real-time order tracking, and a commitment to delivering food within 30 minutes. Faasos earns revenue through commissions on food orders, delivery charges, and advertisements of featured food brands on its app.
Faasos' Growth and Revenue
Faasos' revenue growth tells a compelling story of success. In FY20, the company recorded a revenue of $75.24 million (Rs 572 crore), marking an impressive 84% YoY increase from the previous fiscal year. This robust growth trajectory underscores Faasos' ability to capture the market and cater to the evolving tastes of Indian consumers.
However, alongside this growth, Faasos faced challenges, with net losses ballooning to INR 431 crore in FY20 from INR 131 crore in the preceding fiscal year. Despite the challenges, Faasos' commitment to innovation and adaptability has been key to sustaining its upward trajectory in the fiercely competitive food delivery sector.
Faasos' journey has not been without challenges. One early hurdle was the reliance on legacy Point of Sales systems and the ubiquitous Tally software for accounting and financing. Recognizing the need for a more robust solution, Faasos transitioned to Sage, overcoming financial challenges and streamlining its operations.
The founders, Jaydeep Barman and Kallol Banerjee, acknowledge that location decisions presented early challenges. However, these challenges became pivotal in shaping the company's strategy, leading to the realisation that multiple food brands were essential for sustained growth rather than a mere brand extension.
Faasos' story is one of resilience, innovation, and adaptability. From its inception as a Calcutta Roll store in Pune to its current status as a leading player in India's online food delivery sector, Faasos has navigated challenges, embraced change, and consistently met the evolving demands of consumers. The Faasos cloud kitchen model, coupled with a diverse menu and a commitment to timely delivery, has positioned the brand as a standout success in the competitive world of fast food.
As Faasos continues to evolve and expand its footprint across India, its journey serves as an inspiration for aspiring entrepreneurs in the food industry. The fusion of traditional Indian flavours with a modern, tech-driven approach has not only defined Faasos but has also left an indelible mark on the narrative of India's online food delivery revolution. Faasos is not just a food delivery service; it's a testament to the power of innovation and resilience in shaping the future of the culinary landscape.