RedBasil: 100X.VC Investment Thesis



 



Introduction

Managing the acquisition of food and beverages can be a difficult task. It is also an area which allows significant cost reductions, and at the same time, if not managed well, the same costs can spiral out of hand. Apart from that, procurement is frequently where plans are transformed into actions, as the department searches for the most effective ways to implement new strategies. The food and beverage supply chain requires meticulous planning, and strong analytics and software can help make the process go more smoothly.

A supply chain is similar to a network in that each component must work well for the overall network to function. There is often a lack of communication among players in a food supply chain who are spread across India, resulting in food insecurity and public health concerns.

The food supply chain is a complex but necessary food production system that the global society relies on to ensure food security and sustainability. People often take their food supply for granted, but they forget that a single break in the chain might result in shortages, poisoning, or price increases. This disproportionately impacts the most vulnerable members of society, such as low-income Individuals and small grocery stores and restaurants. Furthermore, the entire food supply chain has been pushed to adapt and change due to a global epidemic. That’s where Red Basil is helping!

Red Basil is a tech driven B2B marketplace for restaurants, Food and beverages and cloud kitchens to discover, connect & transact with wholesale food suppliers. It is a zero-inventory model online marketplace that improves quality, transparency and price discovery for commercial kitchens, while offering suppliers a full-featured digital storefront to grow their business and improve their cash cycle. Incorporated in 2021, Red Basil is solving the gaps in better food and beverages procurements and also helped customers to get the better quality of perishable products.  




Where is started

Naman has 16 years of experience in operations & technology roles. He holds a Masters in Logistics from MIT.  He has worked with EY, Infosys and for a supply chain start-up which was acquired by SAP. He was always inclined towards the perishable goods industry. Three years back when Naman returned to India, he started looking for ways to address the problems of wastage, price discovery and efficiency in the fresh produce supply chain. He studied the sector further, visited mandis and farms to understand their issues. Naman spoke with and formally surveyed over 120 restaurant owners, chefs and traders in Delhi NCR to understand the gaps in wholesale food procurement and map out possible solutions. Naman teamed up with his friend Amit, who brings deep experience in software architecture and technology from Walmart Labs, and Shivank, who is a leader in sales and business development from Gozo Cabs. Together they decided to launch Redbasil, a B2B marketplace to streamline food supply for restaurants and cloud kitchens.


Market size

Food procurement at the wholesale level is fragmented, credit-driven, and capital-intensive. To complete a buying transaction for any fresh food, be it veggies, meat, or dairy items, there are several touch points on paper, WhatsApp, or email. In this line of work, on-time delivery is critical. Red Basil fills in the gaps in food and beverage procurement, as well as assisting clients in obtaining higher-quality perishable products. The total market size is USD 30 Billion (India) - Food supply for Restaurant and Cloud Kitchen. The app is fully ready and already being used both by buyers and sellers. They are working to digitize and streamline B2B food supply into restaurants and cloud kitchens.




100X.VC thesis

The team is laser focused on single city, single category vertical with tech driven supply chain led marketplace solutions. The digital, zero inventory, Metro Cash and carry model for this space can be a possible winner. The founding team is balanced and experienced and the 100x.vc team believes they have the necessary skills and expertise to create a category dominating company with Red Basil  - with a market ready product with traction.

Conclusion

In this arena, the digital, zero-inventory Metro Cash and carry concept is a hit. The team is laser-focused on a single city, single category vertical with supply chain-led marketplace solutions powered by technology. The founders are diverse, experienced, and 100x. With Red Basil, the team thinks they have the requisite talents and ability to build a category-dominating firm with a market-ready product that has traction. Wishing team Red Basil good luck to disrupt this market of perishable products! 

- 100X.VC Team

Published on: December 10, 2021