To create an integrated hyper-local delivery service, logistics player Roadrunnr and online food ordering platform TinyOwl are in preliminary stages of talks to merge in an all-stock deal.
However, the vision of the combined entity is yet to be discussed. But it has been revealed by a person close to the matter that if the deal goes through then the combined entity might be looking forward to raise fresh funding of at least $40 million. At present, both the startups – backed by enture funds Sequoia Capital and Nexus Venture Partners – have enough cash flow to run the business for next 10 months.
The merger of the startups might explore avenues like introducing food ordering and delivery services and it might expand to categories beyond food like the launch of bike taxis.
Former Flipkart employees Kumar and Arpit Dave founded Bengaluru-based Roadrunnr in February. The focus of the company was to conduct business-to-business deliveries with the usage of an on-demand model to partner with delivery boys and manage the demand and charge flat rate per delivery from the businesses.
In 2014, TinyOwl was founded by IIT Bombay graduates Mandad, Gaurav Choudhary, Saurabh Goyal, Shikhar Paliwal and Tanuj Khandelwal. It raised Rs 50 crore from its existing investors – equoia Capital, Nexus Venture Partners and Matrix Partners – in October.