India’s largest digital payment company Paytm has invested $2.23 Mn (INR 15.99 Cr) in B2B food tech startup Hunger Box, according to reports. Private equity fund and existing investor Sabre Partners also participated in the funding round.
As per the Ministry of Corporate Affairs filings accessed by INC 42, Hunger Box is all set to raise $ 8.1 Mn (INR 57.99 Cr), of which $2.23 Mn has already been pumped by Paytm’s parent company One 97 Communications and Sabre Partners. Filings accessed by INC 42 further claims that One 97 has been allocated 17,013 Series C shares at a nominal value of INR 100.
Rumors were already rife in the market since several months that Paytm may invest in HungerBox.
Both companies have so far not released any official statement on the fundraising report.
Hunger Box has so far raised $ 7 Mn from the likes of Neoplux, LionRock Capital and Sabre Partners. Over the years, the Bengaluru based startup has emerged as one of the poster boys of B2B food tech industry.
Unlike B2C foodtech industry where Swiggy and Zomato are dominant players, B2B industry hasn’t really witnessed a funding upsurge. However, this doesn’t take away the fact that profit margins in B2B market are far higher than B2C market.
The thicker profit margin in B2B coupled with Hunger Box’s strong brand equity may have propelled Paytm for making staretgic investment.
Paytm may look to tap into strong merchant network boosted by Hunger Box, which at present clocks over 4 lakh orders through its 1,100 vendors and 100 corporate clients. There is every possibility that HungerBox may be integrated into Paytm app once all the formalities with regards to the deal is completed.
Founded in 2016, the Bengaluru based company fulfills the catering needs of the corporate workforce. According to company’s official website, it counts big corporate clients like Qualcomm, Microsoft, Accenture and McKinsey.