Founded in 2018 by former Paytm executives Prerna Kalra and Vidya Bhushan, Daalchini Technologies has emerged as a trailblazer in India’s vending machine sector, reporting a remarkable 3.5X revenue growth over two years. This growth is underscored by the startup’s strategic implementation of AI-driven solutions and data analytics, aimed at enhancing the user experience in automated retail through smart vending machines.
As India embraces automated retail—accelerated by rapid urbanization and digitalization—the vending machine market is projected to grow at a CAGR of 14.9% from 2020 to 2026.
Daalchini has installed over 2,500 smart vending machines in more than 80 cities, and the startup has experienced a 123% CAGR in the past eight quarters alone. Kalra notes that their network has expanded from fewer than 200 outlets before the pandemic to over 2,300 currently, providing a diverse array of products including snacks, beverages, beauty items, and essentials for on-the-go consumers.
The company strategically places its vending machines in high-traffic public locations such as metro stations, malls, and IT parks, effectively targeting busy professionals, students, and commuters. Daalchini’s financial performance has also been impressive; its revenue increased from ₹12 crore in FY22 to ₹42 crore in FY24, with ambitions to surpass ₹100 crore in annual recurring revenue by the end of the current fiscal year.
Daalchini’s integration of AI extends beyond basic operations. The smart vending kiosks are designed to collect extensive data on customer preferences, purchasing patterns, and peak buying times. This data enables Daalchini to make informed decisions regarding product assortments and pricing, ensuring that their offerings are tailored to meet local demands. The startup employs its proprietary OFT (Order for Tomorrow) system, which predicts the optimal quantity of fresh meals to stock, significantly minimizing food waste and optimizing inventory. The consumer app further enhances user engagement by analyzing purchasing behavior to offer personalized product recommendations. Unlike traditional vending machines, Daalchini’s offerings are cashless, app-based, and contactless, providing a seamless customer experience.
Daalchini operates on two primary business models: the rental model and the franchise model.
In the rental model, Daalchini retains ownership of the vending machines and manages all operational tasks, while the franchise model involves selling machines to partners who handle their operations. Over 95% of Daalchini’s machines are owned by partners, enabling scalability and expansion. Revenue generation is diversified, with the majority coming from product sales (40% of the topline), advertising on vending machines, and subscription fees for installed machines, contributing 40% of the revenue. Advertising revenue, which includes digital screens and physical advertising spaces, adds an additional 15% to their income.
Looking ahead, Daalchini plans to significantly increase its footprint, aiming to expand from 1,600 to over 5,000 smart retail outlets within the next 12-18 months. The startup has raised over ₹55 crore in funding, with its last round being a $4 million Series A in 2022. Kalra envisions a future where Daalchini’s autonomous smart stores and vending machines are available every 500 meters in livable spaces across India, particularly targeting Tier II and III cities. The company is also exploring new avenues, including micro-market setups and fully automated kiosks, to broaden its product range and retail presence.
In summary, Daalchini Technologies is positioning itself at the forefront of India’s automated retail revolution by harnessing AI and data analytics to meet the evolving needs of consumers, while also strategically expanding its operations and product offerings across the country.
