General Information :
Category : Food and Beverage
Country : India
Started : 2015
Closed : 2016
Cause of Failure : Competition
Founders : Monica Rastogi, Shashaank Shekhar Singhal
Number of Funding Rounds : 1
Number of Investors : 7
Total Funding : $236.6K
What is Dazo ?
Dazo was a food tech startup based in Bangalore which emerged as a “food on demand” company that partnered with few selected restaurants and took care of the food delivery logistics. Hungry customers could find and order their perfect meal within seconds of opening the app, according to the startup founders. Dazo (formerly TapCibo) achieved this by analyzing and saving users’ behavior, preferences and direct feedback. The start app counter intuitive approach of only working with about 20 restaurants that offered different cuisines was based on the (true) assumption that hungry customers had no patience for going through dozens of restaurants menus and reviews. What they needed was the best food delivered within minutes for an affordable price, and this is exactly what Dazo was about.
Why Dazo Failed ?
Two of the main reasons the company decided to shut shop were fierce competition and lack of funding.
Heavy capital investment is essential in the food-tech industry and Dazo started running low on funding.
The very high competitivity in the sector led companies to slash their prices until practically no company could make substantial revenue from the sector and the cost of client acquisition actually increased. Needless to say, Dazo struggled to find findings and the company opted for ceasing its operations within a year of their launch.
- Inc42: Food Tech Startup Dazo Shuts Down Operations
- Business Standard: Bengaluru-based food-tech startup Dazo shuts down due to lack of funding
- Crunchbase: Dazo