Tapcibo Is Now Dazo. Increase In Demand For Food-On-Demand

Get ready to be Daze-d!
Food sector in India has grabbed the attention of investors. We’ve been hearing about at least one such start-up on an average every day. With an addressable market of $50 billion estimated to grow at the rate of 16-20% yearly, the opportunities are endless. Bengaluru-based mobile-only start-up Dazo (previously called Tapcibo) is  riding high on this investor interest as it announced a new round of funding from some of the well-known names from the industry. Investors participating in the funding round include leading entrepreneurs like Sumit Jain (co-founder and CEO, CommonFloor), Aprameya Radhakrishna (co-founder, TaxiForSure), Alok Goel (former CEO, FreeCharge). The round also saw participation from Rajan Anandan (MD, Google India), Amit Agrawal (Country Manager, Amazon India), Vinay Goel (Director Product Management, Google Maps & Local), Gaurav Munjal (Co-founder and CEO, Flatchat) and leading hospitality entrepreneurs such as Ashish Dev Kapur (co-founder, Yo! China).
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What Is Dazo?
Dazo is an Android app that can be used to order food on-demand. But unlike other players, Dazo is not just a delivery service. The menu is curated and users are given an option to choose from 8-10 items. The user can order their choice of meal with just three taps on the app. At the other end, delivery executives carry smartphones powered by a system to get food from nearby restaurants delivered to you.
 
Why Dazo?
Dazo was founded in October 2014 by Shashaank Shekhar Singhal (ex-redBus director) and Monica Rastogi (founder of Explore-in-Android). “We want Dazo to be a household name,” Shashaank said about the re-branding. The founders figured that Dazo was a much easier name to pronounce and relate to. The startup is serving 150+ orders on a daily basis. The startup is seeing high number of repeat orders with the average customer ordering 2-3 times a week. The app has been downloaded over 4000 times. According to Shashaank, a new food partner gets as many as 20 orders on their first day as a Dazo partner. The team hasn’t spent a single rupee on marketing till date and the current team size stands at 20.
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What’s More In Store?
The past six months have seen numerous funding news in the foodtech space. Mumbai-based food ordering app TinyOwl had raised Rs. 100 crore in its second round of funding from Matrix Partners, Sequoia Capital and Nexus Venture Partners. Also, Bengaluru-based food delivery startup Swiggy recently secured $2 million funding from Accel Partners and SAIF Partners. Even stalwarts like Zomato and Foodpanda have entered the food delivery space.
 
Food is the highest frequency e-commerce segment and high ordering behavior leads to brand creation and loyalty, thus leading to strong lifetime value of a customer. This is the leading reason why taxi moolahs like Ola are trying to make a strong foothold in the segment with Ola Cafe.
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