Jiyo Natural aims to raise $3.5 million

Jiyo Natural aims to raise $3.5 million

Umesh M Avvannavar, May 28, 2016, Bengaluru, DHNS:

Jiyo Natural aims to raise $3.5 million
Jiyo Natural, which is offering healthy food, is looking at raising funds of about $3.5 million before the end of this financial year.

Talking to Deccan Herald, Jiyo Natural Managing Director Jayas Damodaran said, “Jiyo Natural was funded by Indian Angel Network in October 2015. Now, we are looking at something around $3 million to $3.5 million before the end of this financial year to scale up operations.”

The Bengaluru-based health food startup embarked its journey in 2014 by a group of food and health enthusiasts. The company began as a retail model, but later on realised it may not be a good model and moved into corporate model.

Damodaran said, “Now the model is not again B2C, it is B2B. We actually don’t believe in taking individual orders. There, logistics will not work out, customer requisition costs are very high, and therefore, unit profitability is very less. Then we cannot sustain for too long. We have seen many other companies in the space, which have had problems mainly because the B2C model is very difficult to maintain, and got a low-margin profit. We are currently delivering meals only to HSR, Koramangala, and Bommanahalli in the city.”

The company delivers around 3,500 meals every day. In that, around 1,900 meals to  over 25 corporates, and the remaining to single customers. The food cost ranges from Rs 75 to Rs 120 and consists of only vegetarian food.

Apart from expanding customer base, the company is in discussion with hospitals, diabetic management centres and health care providers to serve nutritious food.

Recently, Jiyo Natural acquired Sangeeta Aahar. “With this acquisition, the capacity has gone up by 200 persons. The idea was to go into at least one more kitchen in Bengaluru, and take care of 10,000 meals in three kitchens in another three or four months, which is 3,500 meals a day from a kitchen every month. So we reach 10,000 in three or four months. It is not that we have a model in ready; we can replicate the same in multiple cities. We can plan to look at Pune, Hyderabad, and Chennai.”