Raasa: Empowering Street Food Vendors in India for Business Growth

About and Aim of the Startup

Raasa was founded in March 2022 by Manik Sehgal, who has an MBA from Delhi Time School of Marketing and over 15 years of experience as a strategic planner in a marketing company. The co-founder of Raasa, Vikas Sharma, has experience working in a KPO. The company's aim is to provide branding and support to unorganized street food vendors in India. Raasa aims to develop an ecosystem for these vendors, who face several challenges in their business. Through their services, Raasa wants to help these vendors increase their income and improve their quality of life.

USP

Raasa's unique selling proposition (USP) is that it provides branding and support to unorganized street food vendors. These vendors often face several challenges in their business, such as no major brand name, lack of proper licenses, and difficulty in onboarding on food delivery platforms like Zomato and Swiggy. Raasa's services help these vendors overcome these challenges and improve their business. Moreover, Raasa provides training under chefs, which helps these vendors improve their culinary skills and provide better quality food to their customers.

Business Model of the Startup

The business model of Raasa is centered around providing a range of services to unorganized street food vendors to help them grow their business and generate more revenue. Raasa's business model is built on the principle of creating a brand identity for the street food vendors and providing them with the necessary tools and support to compete in a highly competitive market.

The primary service provided by Raasa is branding and a unique ID number to the street food vendors. This helps vendors stand out in a sea of competition and makes it easier for customers to recognize and remember their favorite food vendors. Additionally, Raasa helps these vendors in procuring the FSSAI license, which is mandatory for all food vendors in India. By taking care of this process, Raasa helps vendors avoid the complex and often time-consuming process of obtaining this license.

Raasa also assists vendors in onboarding food delivery platforms like Zomato and Swiggy. These platforms are popular with customers and can help vendors reach a wider audience. By helping vendors get on board these platforms, Raasa opens up a new revenue stream for the vendors.

To further support street food vendors, Raasa provides them with access to high-quality groceries at a reasonable price. This saves vendors time and effort as they don't have to go out and purchase groceries on their own.

Finally, Raasa provides training and guidance to vendors under professional chefs. This training helps vendors improve their cooking skills and provides them with new ideas for dishes. By improving their skills and expanding their menu, vendors can attract more customers and generate more revenue.

Target Market

Raasa's target market is unorganized street food vendors in India. According to Manik Sehgal, the founder of Raasa, the Indian market size for this business is INR 3.5 lakh crores annually. This huge market presents a massive opportunity for Raasa to capitalize on and create a significant impact in the industry.

The unorganized street food vendor sector in India is highly fragmented and faces several challenges such as a lack of brand identity, regulatory compliance issues, and difficulty in accessing new customers. Raasa's services are tailored to address these challenges and provide a comprehensive solution for street food vendors to overcome them.

Raasa's target market is not limited to any particular region in India but instead aims to connect with street food vendors across the country. The founders' vision is to connect with 10 lakh vendors and increase their income three times in the upcoming three years. By targeting this large and highly fragmented market, Raasa has the potential to make a significant impact in the street food industry in India, help vendors grow their business, and create a sustainable ecosystem for the unorganized street food vendor sector.

Gross Sales:

Raasa, a startup that provides branding, licensing, grocery sourcing, and chef training to unorganized street food vendors in India, had a gross sale of INR 40,000 in August 2022, according to their presentation on Shark Tanks India. While this figure may seem low, it is important to note that Raasa had only recently launched in March 2022 and was still in its early stages of growth. Additionally, Raasa's revenue model is based on a commission on the vendors' sales, which means that their revenue will increase as their vendor network grows and their vendors make more sales. Therefore, Raasa's gross sales are likely to increase significantly as they expand their network of street food vendors and help them grow their businesses.

Journey on Shark Tanks India:

Raasa founders Manik Sehgal and Vikas Sharma appeared on Shark Tanks India in search of funding to grow their business. The founders made an ask of INR 50 lakh for 5% equity of the company at a valuation of INR 10 crores. The sharks were initially interested in the idea and the potential for growth in the street food industry in India, but had concerns about the lack of a tech co-founder and potential regulatory problems.

After some back-and-forth, Anupam gave an offer of INR 50 lakh for 25% equity of the company at a valuation of INR 2 crores, with the condition of bringing a tech co-founder and providing them an equal equity share. The founders accepted the deal, and Raasa secured funding to grow their business.

Appearing on Shark Tanks India was a significant milestone for Raasa, as it helped them gain exposure, secure funding, and connect with experienced investors who could provide guidance and support as they grow their business. The funding and guidance from the sharks will help Raasa to expand their network of street food vendors, improve their services, and make a larger impact in the unorganized street food vendor sector in India.