Vending Brothers: How a Simple Snacking Problem Led to a Growing Automated Retail Business in India
Alankrit Jangid | Founder & Director, Vending Brothers
Sometimes, a business idea starts with a small problem that people experience in their everyday lives. For Alankrit, that moment came when he returned to India from Australia and realised how difficult it was to find a vending machine offering the kind of snacks he was used to buying abroad.
That experience eventually led to the launch of Vending Brothers in 2019. What started as an idea to make snacks more accessible has grown into an automated retail business operating across 27 cities.
Today, the company operates approximately 500 machines, handles around 20,000 transactions a day, and has a team of more than 100 people. It is also working towards expanding its network to more than 1,500 machines.
In a conversation with Indian Startup Times, Alankrit shared how the idea took shape, the challenges of building a vending business in India, and why he believes technology and reliable operations will play an important role in the future of automated retail.
How a Gym Visit Led to a Business Idea?
Indian Startup Times: What inspired you to start Vending Brothers in 2019? How did the snacking gap you noticed at your gym in Jaipur turn into a business idea?
Alankrit: I came back to India for a three-month break. I was a regular user of vending machines in Australia, and one day, while going to my gym in Jaipur, I forgot my protein snack. That made me think about why something so basic was not easily available.
I started researching the vending industry in India after work and was surprised by how large the gap was. Even six years after I first noticed it, we believe market penetration is still around 1%.
At that time, vending machines were mostly found in premium corporate offices and major cities. In smaller cities, the challenge was not just installing machines. People also needed to understand why they would be useful.
We had to make the machines easy enough for anyone to use, whether it was a security guard or a managing director. People needed to trust the technology and feel confident that their money would not get stuck if a transaction failed.
Our first two machines had been running for about a month when COVID-19 shut down operations. During the pandemic, we started online grocery delivery and supplied sanitisation products to keep the business going.
The first two years were mainly about surviving and continuing to work towards our idea. As the market began to recover, we focused on building a dependable service that could provide products around the clock, even in remote locations.
My three-month break eventually turned into a six-year journey in India, and I have not looked back.
Making Vending Machines Easier to Use
Indian Startup Times: What problems does Vending Brothers solve for customers and business partners? How are your machines different from traditional vending machines?
Alankrit: We started by looking at the customer’s experience. Many traditional vending machines can be difficult to use, and people may worry about whether a product will be dispensed or their payment will be refunded if something goes wrong.
Our machines have a touchscreen interface, generally ranging from 10 to 22 inches. Customers can browse products, see pictures and prices, select multiple items, and complete their purchase through a shopping-cart-style interface.
They do not need to download an app or scan a QR code just to make a basic purchase. If a transaction fails, the refund process is triggered, and our customer support team is available 24/7. We have real people handling customer queries rather than relying only on bots.
Another problem is the limited availability of good-quality snacks in remote areas. A student at a college campus or an employee working late at an industrial facility may not have many options nearby.
We want customers to find the products they actually want, even at 2 AM. That requires more than installing a machine. We have to manage the products, warehouses, transport, refilling teams, and customer support behind it.
Over time, we have become an operations and supply chain business as much as a vending business.
Building the Business with a School Friend
Indian Startup Times: Could you explain how Vending Brothers works as a business, who your main customers are, and how the company earns money?
Alankrit: I started the business, and my school friend Garvit Khandelwal joined me as co-founder. He is the backbone of our operations.
At that time, Garvit was working in Mumbai, and I was in Australia. We met during a Diwali break in Jaipur and discussed the idea for around four hours. By the end of that conversation, he had decided to join me.
We both chose to build something of our own instead of joining our family businesses. Today, our fathers are also involved in the company.
Our business model has two main revenue streams. We purchase or assemble vending machines and install them at client locations, where we charge a monthly service fee. We also earn revenue from selling products through the machines.
We work with customers across different sectors, including hotels, manufacturing facilities, corporate offices, and educational institutions. Our clients include names such as Oberoi properties, Volvo Eicher, Hero MotoCorp, Hindustan Zinc, Aditya Birla, AU Bank, ICICI Bank, and several educational institutions, including IITs, IIM Udaipur, and BITS Pilani.
Much of our growth has come through recommendations from existing clients. When an organisation is satisfied with our service, it often recommends us to another campus or company.
We have been profitable since the beginning, using our own funds and debt to support the business. We are now working on our first friends-and-family equity round as we prepare for the next stage of growth.
Why Reliable Service Matters More Than Just Installing Machines?
Indian Startup Times: How do you choose the right locations for your machines, and how do partnerships help you grow?
Alankrit: We see ourselves primarily as service providers. Many clients approach us because they have experienced poor service from existing vending operators or need a more reliable solution.
The number of machines in India is still limited, and even where machines are available, service quality can be a problem. Building trust with clients is therefore a major part of our work.
Recommendations have helped us enter locations we might not have considered initially. For example, other campuses have recommended us to institutions that were looking for a better vending service.
We try to understand each client’s needs and build the operations around them. That includes arranging supplies, hiring local employees where possible, and ensuring that products remain available.
Our main priority is simple: the right product should be available to the right customer at the right time. Everything else follows from that.
How Technology Helps Us Keep Machines Running?
Indian Startup Times: How do you use technology and data to manage products, monitor machines, and improve customer experience?
Alankrit: We have an ERP system that records transactions in real time. The information is collected and analysed so we can understand what sells at different locations and what products customers may need in the future.
For example, demand can vary from one hostel or city to another. By studying the data, we can make better decisions about which products to stock and how much inventory is required.
We also have an app available on iOS and Google Play. Customers can check products available in nearby machines, generally within a two- to three-kilometre radius, and book or dispense products through the app where the features are supported.
Technology also helps us work with brands. A local brand from Jaipur, for instance, can reach customers in another city through our network. We also support product sampling campaigns.
In a sampling campaign, customers can provide and authenticate their details through an OTP to receive a participating brand’s sample. This helps the brand understand who has tried its product.
Inventory management is another important part of our system. Our refilling teams receive alerts when stock falls below predefined levels, such as 70% or 50%. We also receive notifications if a machine remains offline for a certain period.
The system helps employees plan refills based on actual sales instead of carrying unnecessary stock. It can also flag products approaching their expiry dates so they can be blocked from sale when required and removed by the refilling team.
We have started using AI in our warehouses and are also operating electric two-wheelers and three-wheelers to help reduce our carbon footprint.
Why India Still Has Room for Vending Machines?
Indian Startup Times: India’s vending market is estimated at more than $2 billion, but vending machines are still relatively uncommon. Why do you think this is the case?
Alankrit: I believe the opportunity is significant. We estimate that there are fewer than 40,000 vending machines in India, even though there are millions of potential locations.
More offices, campuses, and factories are beginning to understand the benefits of automated retail. If employees work late, for example, a traditional pantry may not be available after regular working hours.
Quick-commerce services offer another option, but delivery and packaging fees can make small purchases more expensive. A vending machine within an office or campus can offer a convenient alternative.
The opportunity is not limited to snacks and beverages, either. We have also worked on sanitary pad vending machines, adding digital systems that allow inventory to be tracked. According to our discussion, more than 100 of these machines have been deployed.
We are exploring other categories, including smoothies and fresh juice. We are also developing a paper-printing vending machine, with a prototype expected to launch soon. Such machines could be useful at places like RTO departments and passport offices, where people often need quick printouts.
Fresh coffee is another area we are interested in.
I do not believe every service needs to be replaced by a machine. The idea is to identify situations where automation makes everyday tasks easier and more convenient.
UPI has made payments simpler, while remote monitoring and real-time inventory systems help operators manage machines more efficiently. As people become more comfortable with technology, I believe the market will continue to grow.
Managing Operations Across 27 Cities
Indian Startup Times: What challenges have you faced while managing machines across so many locations?
Alankrit: Managing inventory, arranging supplies, and hiring people locally have been some of our biggest challenges.
One thing we have learned is that processes cannot remain the same forever. As the business grows, we need to identify gaps, improve our procedures, and make changes wherever necessary.
Sometimes, clients ask us to serve locations that are difficult to reach. Servicing a remote property such as Wildflower Hall in Mashobra, near Shimla, requires planning and a dependable local team.
We work with national brands as well as local suppliers. We also have trainers and stock auditors who help us establish operations in new locations.
During the first two years, Garvit and I handled many things ourselves. We did refilling, worked with the machines, and learned how to troubleshoot problems on the ground.
That experience has helped us understand the practical challenges our teams face. When you know how long it takes to refill a machine or fix a problem, it becomes easier to train people and create workable processes.
Our aim is to make sure that problems are addressed when they arise, rather than being postponed. Customers should be able to depend on the service regardless of the time or location.
Growing from 500 to 1,500 Machines
Indian Startup Times: Could you share the company’s current scale and your targets for the coming year?
Alankrit: We currently operate approximately 500 machines across 27 cities, and our team has around 103 to 104 people.
Our revenue run rate for this year is approximately ₹30 crore, compared with around ₹15 crore last year. We are also handling approximately 20,000 transactions a day.
Our target is to cross 1,500 machines next year. It is an ambitious target, and executing it will require a lot of planning.
We have entered different markets to understand demand and establish our operations. The aim is to put the necessary systems in place before scaling further.
For example, if we already have a warehouse in Ahmedabad, we can use its available capacity instead of immediately renting a larger space. We can expand the facility when the number of machines in that market justifies it.
We want our operating costs to grow more slowly than our revenue wherever possible. That means planning carefully, improving logistics, and using technology to manage more machines efficiently.
Our focus now is on expanding the business without compromising the service quality that has helped us build relationships with our clients.
Advice for Young Entrepreneurs
Indian Startup Times: What advice would you give young entrepreneurs who want to enter this industry? What is the most important lesson you have learned?
Alankrit: I would say that doing business in India is exciting, but it is not easy. Different markets have different ways of working, and transparency and ethical practices are important.
My advice is to get hands-on experience in the industry you want to enter. Find good mentors or founders who can guide you and help you understand the challenges.
You also need to be prepared to take risks. Garvit and I both left well-paying jobs to build this business, and that decision required commitment.
Vending is a capital-intensive industry. You need to invest in machines, stock, people, warehouses, transportation, and logistics. Margins improve as you reach a certain scale and gain more purchasing power, so you need to understand the business economics before expanding too quickly.
Most importantly, stay honest with your customers.
A brand might be willing to pay to list its products in your machines, but that does not mean every product is right for your customers. If people do not like the quality, the business may lose their trust.
You have to understand what your audience wants and offer products that meet their expectations. That may mean turning down some short-term opportunities, but customer trust matters more in the long run.
Looking Ahead
Vending Brothers began with a simple observation: people should be able to find the products they need without depending on a shop or service that may not be available at the time.
Since then, the business has grown into a network that depends on technology, logistics, local teams, and round-the-clock operations. Its next goal is to expand from approximately 500 machines to more than 1,500 while continuing to improve how those machines are managed.
The company is also exploring new categories beyond snacks, including sanitary products, fresh beverages, and printing services.
For Alankrit and Garvit Khandelwal, the opportunity lies in making automated retail useful in everyday settings. As the business grows, its ability to maintain product availability, reliable service, and customer trust will be central to its next phase.
Interview By: Palak Pandey
Source: www.indianstartuptimes.com
