Founded in 2018 by former Paytm executives Prerna Kalra and Vidya Bhushan, Daalchini Technologies is rapidly changing India’s retail landscape. Leveraging data-driven technology and AI, Daalchini offers consumers a diverse selection of products through smart, automated vending machines. With rapid urbanization, digital transformation, and increased retail investment, India’s vending machine market is predicted to grow at a compound annual growth rate (CAGR) of 14.9% from 2020 to 2026. Daalchini’s strong market presence and innovative AI-based solutions have established it as a leader in this expanding sector.
Expanding Footprint and Revenue Growth
Since its inception, Daalchini has successfully deployed over 2,500 smart vending machines across more than 80 Indian cities, achieving a 123% CAGR over the last two years. “We had less than 200 outlets before COVID-19, but now we operate more than 2,300 vending machines,” states Prerna Kalra, Co-founder and CEO. These machines serve various customer needs, from fresh snacks and beverages to wellness items and essential products. Positioned strategically in high-traffic areas like metro stations, IT parks, malls, and office complexes, Daalchini’s vending machines are tailored for busy professionals, students, and urban residents.
In FY22, Daalchini generated revenue of Rs 12 crore, which increased to Rs 25 crore in FY23 and Rs 42 crore in FY24. The company aims to exceed Rs 100 crore in annual recurring revenue by the end of this fiscal year. Key factors contributing to this impressive growth include strategic expansion across 70+ cities, continuous product innovation, and real-time data insights that drive operational efficiency.
Integrating AI for Enhanced Retail Solutions
Daalchini’s smart vending machines utilize AI and Internet of Things (IoT) technology to optimize operations and customer satisfaction. The kiosks gather data on consumer preferences, purchasing patterns, and peak demand times. “This data helps us make informed decisions about product assortment, pricing, and replenishment,” explains Kalra. Daalchini’s AI-driven approach allows it to meet local consumer demands, adapt to seasonal trends, and maintain high stock availability.
One unique aspect of Daalchini’s technology is its proprietary OFT (Order for Tomorrow) engine, which uses historical sales and consumption data to predict the optimal quantity of fresh products for daily restocking. This predictive model minimizes waste and ensures that each vending machine has the right products for the area it serves. Additionally, the Daalchini app employs AI to analyze users’ purchasing habits and recommend products tailored to individual preferences, enhancing the overall consumer experience.
Cashless, App-Based Vending for a Modern India
Daalchini’s vending machines are fully digital, supporting contactless payments through UPI, mobile wallets, and credit cards, making the shopping experience seamless. Around 80% of its machines offer a variety of meal options, including breakfast, snacks, salads, and desserts, with partnerships from leading D2C brands. The machines are equipped with machine learning algorithms that track food safety, deactivating products nearing expiration to prevent consumer issues.
Daalchini has built strong partnerships with over 40 prominent brands like Amul, Britannia, Nestle, and ITC, serving more than 500 clients, including Paytm, Fortis, Dell, and MAX Hospitals. This collaboration helps Daalchini differentiate itself in a competitive market that includes companies like Vendiman, Nutritap, and Vendekin.
Daalchini’s Dual Revenue Model: Rental and Franchise
Daalchini’s revenue model comprises two main streams. The rental model allows clients to rent vending machines, with Daalchini managing all operational aspects such as restocking, maintenance, and customer support. In the franchise model, partners purchase the machines and handle operations, with Daalchini providing technology and supply chain support. Currently, more than 95% of Daalchini’s machines operate under this franchise model.
The company generates revenue through a variety of channels: product sales (contributing 40% of revenue), advertising on vending machines (5%), and subscriptions. In subscription arrangements, clients like offices, hospitals, and factories pay a monthly rental fee for machines placed on-site. Digital and physical ad placements in Daalchini’s machines also generate revenue, contributing 15% of the total income.
Future Plans and Market Expansion
Daalchini has ambitious expansion plans to grow its network to over 5,000 retail outlets within the next 12 to 18 months. With orders from emerging Tier II and III cities like Kutch, Jharsuguda, and Sambalpur, Daalchini is expanding beyond metro hubs to industrial sites and corporate offices across India. The company’s vision is to make autonomous retail accessible within 500 meters of any urban area in the country.
To date, Daalchini has raised more than Rs 55 crore, with its last funding round being a $4 million Series A led by Unicorn India Ventures. This growth capital, alongside a clear AI-driven strategy, is set to make Daalchini an essential part of India’s evolving retail ecosystem, transforming consumer interactions and enhancing accessibility in automated retail.
Read more: Marketing News, Advertising News, PR and Finance News, Digital News
