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India Today
2 days ago
- Business
- India Today
How cloud kitchens are powering India's new F&B renaissance. All you need to know
There was a time when opening a restaurant in India required the sort of courage one usually reserves for starting an airline or making a Bollywood period drama. It meant leases, licenses, lavish interiors, and an unwavering belief that people would walk in, order generously, and return often enough to keep the lights the F&B playbook has been rewritten, and the pen was handed over to a new generation of food entrepreneurs who've traded chandeliers for cloud can thank the pandemic for some of it. Or the fact that India's young urbanites are now more likely to order an artisanal bao than walk out for one. Or simply that the dream of launching a food brand no longer needs a storefront on Linking Road or Khan Market—it just needs a strong idea, a shared kitchen, and a few loyal delivery Today spoke with Sanket S Co - Founder of Scandalous Foods to get more to India's cloud kitchen boom. Where innovation is on the stove, and real estate no longer dictates kitchens—also called ghost kitchens or dark kitchens, are not new globally. But in India, they've found a particular kind of sweet spot. Think of them as the WeWork of the food world. No dining area. advertisementNo footfall. Just a back-end kitchen, digital orders, and a menu that lives and breathes it's not just the format that's exciting, it's the philosophy. These are not merely kitchens. They are launchpads. They allow young food brands to do what restaurants traditionally could not, experiment, fail, pivot, and try again. All without mortgaging your home or betting on a landlord's Korean rice bowls to saffron-infused laddoos that last 45 days without a single preservative, the cloud model has become the test kitchen of India's culinary future. A quiet revolution is simmering, one container at a time.A MODEL FOR EVERY APPETITENot all cloud kitchens are created equal. Some go solo, independent spaces owned and operated by one brand. Others opt for co-working kitchens, where multiple ventures share facilities, infrastructure, and sometimes, inspiration. Then there are marketplace models, managed by giants like Rebel Foods, where third-party brands with proven traction are onboarded at most startups, the first step is humble, rent a space, set up operations, and let the food speak for itself. The beauty of this model lies in its accessibility. You don't need foot traffic when you have order data. advertisementYou don't need dcor when you've nailed your biryani-to-delivery-box experience. And most importantly, you can test product-market fit with agility and like every good story, there's a PRICE OF STAYING INVISIBLE The success of a brand born in the cloud is real, but so is the challenge of staying visible. On aggregator platforms, where most cloud kitchens thrive, the customer often remembers the delivery app, not the brand that made the food. Customer loyalty becomes hard-earned currency in a space ruled by convenience and to that the high commissions and platform-led price cuts, and suddenly, scaling sustainably starts to look like a different kind of uphill why many of the new-age brands are choosing a hybrid route. A cloud kitchen for quick market entry, QSRs for recall and visibility, and eventually a dine-in format to deepen the brand experience. Some brands are working behind the scenes, especially, when it comes to the increasing average-order-value (AOVs). These homegrown brands are targeting the irreplaceable Indian habit of post-meal desserts. They source it from the best, and perfect the science of shelf life, and supply sweets to restaurants you thought made them in-house; and just like that the whole cloud kitchen industry stands to accumulate more profits per WE'RE HEADEDZomato and Swiggy recorded a combined sales figure of $4 billion last year. Online food ordering is expected to reach around $4.5 billion in FY24, with projections indicating growth to approximately $13 billion by 2029 and $26 billion by 2032. It's about the hunger, literal and metaphorical, for innovation. From millet pizzas to plant-based kebabs, the Indian palate is more adventurous than ever before. And in this evolving appetite, cloud kitchens have found their calling. They are no longer the poor cousin of the dine, in dream. They are the idea labs. The rehearsal stage. The proof-of-concept before the main eventually, every food brand worth its salt, and ghee, must step out of the shadows. The true mark of success isn't just a bestseller menu online, but a loyal customer offline. A face to the name. A place where the aroma doesn't stop at the now, though, the cloud is a good place to begin.
Time of India
30-04-2025
- Business
- Time of India
Scandalous Foods raises Rs 2 crore in ongoing seed+ funding led by New Age India Fund
Scandalous Foods has secured Rs 2 crore in an ongoing seed+ funding round. The capital will be strategically invested in expanding production capacity and strengthening its SME HoReCa (Hotels, Restaurants, and Catering) distribution network, fueling the company's next phase of growth. With 50 percent of the funds allocated to scaling production, Scandalous Foods is gearing up to meet the rising demand that has driven consistent month-on-month growth. The remaining 50 percent will focus on expansion efforts, with 30 percent dedicated to building a robust SME HoReCa distribution network—targeting smaller restaurant chains with fewer than five outlets—and 20 percent directed toward online and offline marketing initiatives, stated a release issued by the company. "At Scandalous Foods, we're not just selling Indian sweets —we're working towards becoming the biggest mithaiwala in the unplanned post meal impulse purchase space. This funding is a massive leap forward in our journey to make our sweets a staple in restaurants and catering menus across India. With bigger production, a stronger distribution network, and new products in the pipeline, we're gearing up to bring our bold, delicious creations to even more people. The love we've received so far has been incredible, and this is just the beginning! Also, we truly appreciate the promptness and professionalism shown by New Age India Fund in transferring the funds. It's a great start to what we believe will be a strong and supportive partnership.' said Sanket S ., co-founder of Scandalous Foods. The company has experienced 7x growth in calendar year 2024, selling over 2 million cups of Indian sweets across nine cities. With a reach of nearly one million unique consumers through its 27 B2B clients and 1,500+ distribution points, Scandalous Foods is quickly becoming a go-to name in the industry, the release added. Avinash Kalia , chief investment officer, New Age India Fund explained 'At our fund, we actively seek out founders with the vision and capability to execute and scale in unique, high-potential niches. Sanket and the team behind Scandalous exemplify this perfectly. With prior experience in the food industry, they've identified a compelling niche and are poised to capitalize on it. Sanket is a driven entrepreneur with a clear roadmap for where Scandalous is headed, and his infectious enthusiasm makes it easy to believe in that vision. We're excited to partner with them on this journey.' Beyond scaling its footprint, the brand is introducing 2-3 new products and expanding into new sub-channels within existing markets. Initially focused on key account HoReCa clients, Scandalous Foods will now target SME HoReCa and caterers, further strengthening its presence in India's evolving F&B landscape, said the release. Looking ahead, the company is focused on achieving INR 20 crore+ revenue within the next year, while also preparing to expand into the Middle East by 2026. Additionally, Scandalous Foods will introduce branded Indian sweets under its B2B2C label, FAAD, within the HoReCa channel, reinforcing its long-term vision for growth, it added.
