Foodmandu | Everything You Wanted To Know

Foodmandu Business

Foodmandu is Nepal’s largest online food delivery company that delivers its products from more than 130 different restaurants around the city. They are best known as the pioneers of the food delivery industry in the country since their inception in the year 2010. Today, they have become the go-to platform to enjoy foods of our favorite restaurants within the comfort of our homes. In this article, we will discuss how they achieved this feat and the hardships that they encountered in the process.

Foodmandu Background:

Manokar Adhikari, founder and CEO of Foodmandu just wanted to have fresh delicious meals during his breaks at his workplace. But, the breaks he got were minimal and the nearest restaurants were pretty far from his reach. He often felt a need for a food delivering platform that would fulfill his wishes and many others like him. And on 11th November 2010, Adhikari launched “Foodmandu” as a realization of his thoughts to tackle a problem he himself once faced.

Initially, the platform launched with only fifteen employees and around 10 restaurants with a goal to serve others in similar positions like Adhikari. And, the sales were pretty low with only an average of 3-4 orders throughout the day. The team had to struggle a lot as they were a relatively new and people didn’t have proper knowledge about food delivery in particular. But the team didn’t lost hope and the number of orders kept on increasing steadily and brought the company where it is today.

The Struggles and Difficulties:

As a relatively new platform in the Nepali market, Foodmandu also had its own share of struggles and hardships. In particular, a food delivery business was relatively new during those times and people has little to no information about it. Some were skeptical while others didn’t even know about its existence.

However, all of that gradually disappeared and business was going smoothly until the massive earthquake of 2015. It rendered almost all business useless and as Foodmandu was relatively young, it also took a huge hit. Yet, it didn’t lost hope and continued its services even during those times and also helped restaurants get back on their feet. Afterwards, the pandemic also had a toll on the platform and rendered it hopeless with the strict rules and guidelines. Those times were hard for everyone and those in the food delivery industry were at a maximum risks. None the less, the brand continued to provide its services with adequate safety guidelines gaining even more customer bases in the process.

Business Model:

Foodmandu started its services as a food delivering platform that offered foods with quick deliveries. They didn’t sell their own products but instead brought foods form the brands that we know and love. Similarly, their prices are equal to those that people would usually pay for in the restaurants. As a result, it was able to gain customers quickly as people knew what to expect from their deliveries. Also, the brand’s major strength lies in customer retention which is as high as 80%. For the most part, they didn’t spend on marketing but invested heavily on their own service qualities. And, after many years of sound growth they deliver an average of around 200 orders daily form across 160 restaurants with a team of 30 people.

Present Scenario:

There is no doubt that the brand is a huge success and there are many restaurants that want to be associated with it as well. However, the market scenario has also changed and there are many competitors like Foodmario, Bhojdeals, Bhoklagyo etc. that provide a similar experience. To counter this, the platform has expanded into other places outside the valley to remain the best in the business. They also have joint ventures with other companies to secure funding for their expansions as well. For instance, they also signed a MOU with Dolma Impact Fund for around USD 4 million in funding. Considering this, we can easily conclude that the brand is still competitive and miles ahead of the competition.

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