Opening a line of delivery-only restaurants in aggregators like Swiggy and Zumato is the trend, but high rents along with mismanagement of inventory and supply chain can close them down just as quickly. That’s where SupplyNote comes in.
Founded by IIT Kanpur, Abhishek Verma, Nitin Prakash, Kushang and Harshit Mittal graduates in 2019, SupplyNote is a software-as-a-service startup (SaaS) that counts the inventory procurement processes of restaurants and automates supply chain management.
“Usually, restaurants suffer huge losses due to mismanagement of inventory,” says Kusheng, who uses only one name.
“They also face challenges when purchasing material when they need to be assured of the best cost and availability. The current offline model is inefficient and costs restaurants about 8-10 percent of the bottom line. Through SupplyNote, food businesses like restaurants and bakeries can increase the bottom line. Theirs. ”
The four founders first met at IIT in 2011 and began their entrepreneurial journey immediately after graduation in 2015. They helped brands run under-the-line advertisements – promoting beyond the regular media – on food packaging items. Eventually they started supplying food packaging material to restaurants and eateries through their own B2B e-commerce platform.
Working closely with these factories helped them understand the needs of the restaurant business. They understood that the problem lay in the procurement process and not in the discovery of the product. It has become the springboard of SupplyNote, which digitizes the purchasing process digitally and automates steps such as inventory management, digital ordering, payment ledger management and supplier and product discovery.
According to statistics, the food and beverage industry in India is expected to record revenue of $ 7.6 billion In 2021. Revenues are expected to grow 10.4 percent Annually, resulting in an expected market volume of $ 11.3 billion Until 2025.
The industry is divided into organized and unorganized sectors. The organized sector, which accounts for 34 percent of the industry according to Kusheng, is the target group of SupplyNote.
“In the organized sector you have two formats, chain restaurants and independent restaurants. In the last two years there has been a change in the paradigm in India and a main requirement for these restaurants is standardization of processes, both front and back. Here we are playing catalyst for business.”
With SupplyNote, such restaurants can manage inventory, place orders and reveal sales performance insights to improve the health of their business. “It usually is Lowers the cost of operations And translates to Higher profits, “Says Kushang.
How the service works
After the customer – a restaurant or restaurant business – registers and requests a demo on the SupplyNote website, the team explains the use case and how the solution will benefit the establishment.
To avail the solution, the customer pays a license fee of about 20,000 rupees per year per outlet. Then, SupplyNote gets the restaurant on the platform by entering all the requirements, recipes and inventory details.
“We synchronize the solution with the restaurant’s PoS (point of sale) systems to get the details of their sales,” says Kusheng. These details help the solution to analyze and reach different levels of stock SKUs (inventory maintenance units), purchased by the restaurant. This understanding allows us to contact the suppliers with requirements automatically. ”
The SupplyNote team provides training to restaurant members on the use of the solution, Kusheng says.
Vendors have their own SupplyNote dashboard, which reflects the purchase order. They can accept the purchase order and convert it to an invoice on the same platform and send the order. This is where automated ledgers are created for buyers and suppliers. “The restaurant can pay its vendors on the platform without hassle,” Kushang says.
The Noida-based Rolls Restaurant brand was SupplyNote’s first customer in 2019. The restaurant wanted a supply chain automation solution. Currently, the startup has more than 1,200 customers on its platform.
SupplyNote is backed by several investors. The startup raised $ 600,000 from SucSEED Venture Partners, Venture Catalysts, CIO Angel Network, 91springboard, GHV Accelerator, Das Capital and SOSV. She raised three more rounds: $ 115,000, Bridge $ 335,000 and $ 550,000 pre-series. In all, the founders raised $ 1.6 million.
SupplyNote’s challenge was to raise small businesses with its digital solutions.
“They are the key to our digitization vision,” Kusheng says. “However, the adoption of digital solutions in their conventional supply chain procedures is still very slow. They are not yet supposed to embrace the digital revolution on several levels, which is interfering with our business.”
The other problem was convincing people to move their online activities, he adds.
SupplyNote wants to get a deal volume of 100 million By the end of 2021, for which it is strengthening its sales channels to connect with more customers.
Activation closed with FY20 with million dollar In revenue and expects to end current funds (FY21) with $ 1.4 million, Growing by 30 percent.
SupplyNote competes with Eagle Owl, GetApp and Wooqer.