Impacting on the business collapse, DishServe startup failed to convince multiple parties that its business could scale to a US$100M ARR in the next 5-6 years.
Heaptalk, Jakarta — A cloud kitchen startup, DishServe, is reportedly to cease business and operations due to insufficient funding and unsuitable business models. Based on the written statement on LinkedIn, the CEO of DishServe, Rishabh Shinghi, stated the current funding winter delivered a terrible impact on the company.
Shinghi added, “An incredible journey comes to an end. With great sadness, I would like to announce we have shut down DishServe. Initially, our margins were low, and we focused on growth. We were exhausted from our runway doing that. By the time we improved our margins, the runway was already too tight,” cited in Dealstreet Asia.
On the other hand, DishServe had a bland Food and Beverage (F&B) narrative which is not a suitable business model for venture capital firms. As affirmed by the CEO, the company could not convince multiple parties that its business could scale to a US$100M Annual Recurring Revenue (ARR) in the next 5-6 years.
Founded in 2020, DishServe connects underutilized kitchens with various food and beverage brands. This startup also upgrades kitchen equipment and rents it to the Food and Beverage operators, who use the kitchen as the furthest distribution point to reach customers in diverse areas.
During its business journey, DishServe gained its Pre-Series A funding for an undisclosed amount, led by Insignia Ventures Partners, Genting Group, in November 2021. The startup also has a network of more than 200 kitchen partners in 10 cities. Besides, this cloud-kitchen startup also released diverse Food and Beverage brands and served more than 100,000 customers.
Aiming to continue strengthening its business operations, In early 2023, this cloud kitchen startup announced that DishServe startup had transformed its business model to focus on back-of-house automation operations for restaurants, cafes, and delivery-only kitchens.
The business transformation of this startup also includes integrating food delivery applications, pricing automation and promotions, financial reconciliation, inventory management, supply chain and logistics, customer service, and QR code-based dine-in. However, this business pivot strategy has flunked to resolve the company’s crisis.
