Food Panda earns PKR 1 billion in FY16, eyes PKR 2 billion for FY17

food panda revenue 2016

Food Panda has crossed PKR 1 billion in gross merchandise volume (GMV) in the fiscal year 2015-2016 announced by Food Panda Pakistan CEO Nauman Sikandar in a media conference held recently.

‘The company has achieved around half a million customers in the last three years, pushing the sales revenue to 100 crore rupees this year making it one of the top revenue generating e-commerce companies in Pakistan,’ he added.

Food Panda Event

At the event, Ralf Wenzel the founder and CEO of Food Panda Global said in a video message that the company would like more investments in the country.

He said the focus is to expand Food Panda service in areas where it has not reached yet while decreasing the food delivery time to less than 30 minutes.

TV celebrity Faisal Qureshi was the guest of honor of the event. He praised the success of Food Panda and said, ‘It is appreciable that the company is serving the new and aging food entrepreneurs of Pakistan alike.’

Reza PirBhai, Managing Director of KFC Pakistan, said Food Panda and KFC are working together for the last three years, and initially KFC had not even thought that an IT delivery service would bring such a significant order volume to KFC, but it did.

Currently, 35 percent orders of KFC are being delivered by Food Panda, and he hoped it would double in the upcoming years.

Where Food Panda Pakistan Stands Today?

  • The company has a customer-base of around half a million users.
  • It generated GMV of 1 Billion rupees in FY16.
  • The top four cities of Pakistan have a daily volume of 70,000 orders.
  • The app allows a user to place an order in just four clicks.

The Three Ingredients: Food, Customers & Restaurants

Nauman said the recipe behind Food Panda’s success is made up of three elements which include Food, Customers, and Restaurants.

Food:

According to Nauman, Good food is the only thing that everybody wants to eat, and Food Panda is making that possible.

‘We have a team of around 20 people that goes into every area of the city and lists down top restaurants in that area. Then our marketing department contacts them and takes them onboard.’

This is how the company is trying to get the best menus at one junction.

Customers:

‘Initially when we were starting EatOye we were told that review section should not be added to the app otherwise customers will abuse it. But they not only used it sincerely but praised us many times.’

‘The customers are not only courteous but have a lot of buying power as well,’ he added.

It should be noted that the e-commerce market in Pakistan is around 200 billion rupees, and it is predicted that this will further scale to 300 billion rupees in the coming five years.

Restaurants:

Nauman said both the restaurants and Food Panda have one motive, and that is recursion. Both want to bring back old customers, and that is the third ingredient behind the success of the company.

Food Panda’s goals for next year:

The company has set a few goals for the year 2017. That is, to push the GMV to Rs 2billion by the year 2017 end. Secondly, to make the food delivery service more attractive to the customer, it will soon start order tracking service. Third is to decrease delivery time by 30 minutes.

The details for these have not yet been announced.

HTC Pakistan, Food Panda Collaborate:

HTC Pakistan, Food Panda, have decided to collaborate on new business avenues. The Business Unit Head of HTC Pakistan revealed at the occasion that on the sale of each HTC Smartphone, the company would provide a PKR 500 Food Panda voucher to the customers.

What if someone wants to open next Food Panda or Eat Oye in Pakistan?

Nauman Sikandar was the founder of EatOye before it merged with Food Panda. While talking to MoreMag, he said that before venturing on this model, he spent time in the market understanding new sources of revenues and especially the restaurant business itself.

He said, ‘I used to run a company called Food Connections before starting EatOye.’

For all who do not know about Food Connections, the company used to provide reviews and ratings of restaurants. It was a restaurant guide for food lovers of Pakistan.

He said if anyone wants to start a food delivery business at this time, he should go for it. But he should know that starting the business is easy but keeping it alive is not. Therefore, he will need to give his two hundred percent. ‘You are young, you have the energy, just give it your 200 percent and you will be successful.’

He also offered all new restaurant entrepreneurs to enlist themselves on Food Panda so they can enjoy more coverage.

Food Panda revenue

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