Introduction
Street food has always been the favourite of every Indian, the biggest reason for this is its most affordable price with delicious taste. But in street food, hygiene and low quality oil and spices are the most feared. Street food industry is very unorganised industry. These street vendors face a lot of challenges on daily basis. They have no brand name.
To solve all these problems, here comes Raasa Karts, a Brand that has changed 360 degree this street food industry with its safe and hygienic food carts. Raasa is on a mission to improve the life of 1 million hygienic and safe food karts.
In this article, we will discuss the brand Raasa, its services, founder, and how it has changed the street food industry.
About Raasa Karts:
To create an environment for this unorganised street food industry, Raasa Karts was founded in March 2022 by Manik Sehgal.
Raasa has entered in this street food industry to help street vendors in offering a Brand Name with a special ID number, and assistance in obtaining a FSSAI licence. Raasa assist these street food vendors in on boarding on Zomato and Swiggy. To save time on grocery shopping, they offer the grocery products at fair prices to street vendors by delivering groceries to their doorstep. Additionally, Raasa offers training with chefs, assisting these vendors in honing their culinary abilities and supplying superior meals to their clients.
These unorganised street food vendors are given names and branding by the Raasa. Team Raasa was all aware of the challenges faced by street food vendors. They spoke with numerous food sellers and discovered some important problems, such as the requirement for these merchants to have a major brand name.
Raasa is a distinctive food cart company that strives to provide its clients with wholesome, fresh meals. Raasa intends to construct numerous food carts across Delhi NCR region and eventually the entire country of India using ingredients that may be found locally. The Company has expended a lot of time, energy, and money creating a cuisine that is both delectable and nutritious.
About Founders:
Manik Sehgal and Vikas Sharma co-founded Raasa Kart. Manik Sehgal, a native of Delhi, founded the Brand. He completed his MBA from the Times School of Marketing, Delhi. He spent 15 years as a Strategy Planner in the marketing industry. Vikas Sharma, a Brand co-founder, was running KPO (Knowledge Process Outsourcing) business. Vikas Sharma was looking after branding of food karts and conversation with food cart vendors. Vikas Sharma has left Raasa Kart as a co-founder.
Raasa Karts registered a Company i.e. Raasa Karts India Private Limited on 01st November 2022. Mr. Manik Sehgal and Surbhi Sehgal are its Directors.
The Company wants to create branding and promote India's unorganised street food vendors. Raasa seeks to create an ecosystem for these vendors, who deal with several difficulties in their line of work. Raasa hopes to assist these merchants in raising their income and enhancing their standard of living through their products and services.
Business Plan of Raasa:
The core of Raasa's business strategy is to offer a variety of services to unorganised street food vendors so they can expand their operations and increase their revenue. The foundation of Raasa's business strategy is the idea of giving street food vendors a distinct brand identity and equipping them with the resources they need to thrive in a cutthroat industry.
Additionally, Raasa helps street food vendors join meal delivery services like Zomato and Swiggy. These websites are well-liked by clients and can assist vendors in expanding their markets. Raasa gives vendors access to a new source of income by assisting them in joining these platforms.
India's unorganised street food vendors are the company Raasa's target market. The founder of Raasa, Manik Sehgal, estimates that this industry generates Rs. 3.5 lakh crores in revenue yearly in India. Raasa has a tremendous opportunity to profit from this sizable market and make a substantial contribution to the sector. The unorganised street food vendor industry in India is extremely fragmented and has several difficulties, including a lack of a distinctive brand identification, problems with regulatory compliance and difficulty reaching out to new clients. The services offered by Raasa are specifically designed to deal with these issues and offer complete solutions for street food vendors to deal with them.
The goal of Raasa is to establish connections with street food vendors all over India, not just in one specific area. In the next three years, the founders want to connect with 10 lakh vendors and triple their income. Raasa has the potential to have a substantial impact on the street food industry in India, assist vendors in expanding their businesses, and establish a long-lasting ecosystem for the unorganised street food vendor sector by focusing on this sizable and highly fragmented market.
Shark Tank India Pitch & Funding:
Raasa Founder Manik Sehgal appeared on Shark Tanks India Season 2 in search of funding to grow their business. The founder made an ask of Rs. 50 lakh for 5% equity of the Company at a valuation of Rs. 10 crores.
The Sharks were initially drawn to the concept and the potential for expansion in the Indian street food market, but they were concerned about the lack of a co-founder from the IT sector and potential regulatory issues. According to their pitch on Shark Tanks India Season 2, Raasa, a Brand that offers unorganised street food vendors in India branding, licencing, grocery procurement, and chef training, had a gross revenue of INR 40,000 in August 2022.
Anupam Mittal, Indian entrepreneur and angel investor (Founder Shadi.com, Makaan.com) made an offer of Rs. 50 lakh for 25% of the company's equity at a valuation of Rs. 2 crores after some back-and-forth, with the stipulation that a tech co-founder be present and receive an equal equity portion. The deal was accepted by the Founder and Raasa was able to obtain funding to expand their company.
Raasa's appearance on Shark Tanks India was a major accomplishment since it gave them visibility, helped them get finance and allowed them to interact with seasoned investors who might help them build their company. Raasa will be able to grow their network of street food sellers, enhance their services, and have a greater influence on the unorganised street food vendor market in India with the assistance of the sharks' financing and advice.
Conclusion
Everyone has a favourite street food seller whose food they love. In India, street food is highly popular yet street food vendors their deal with a number of issues. Raasa came up with the concept to address important issues like the lack of a well-known brand name among these providers.
Finally, Raasa's distinctive business strategy and solution for nutritious street cuisine was sufficient to catch the Sharks' interest on Shark Tank India. With the Sharks' funding, Raasa is now able to realise its ambition and increase its presence throughout India. There's no doubt that Raasa has the potential to grow into a very successful company in the future, but it remains to be seen whether the Company can deliver on its promises.