Zomato, UberEATS In a Bid To Acquire Bangalore Delivery Startup Runnr In a $20-50M Deal
The domestic online food-delivery space is likely to see another big consolidation move play out.
UberEATS and Zomato have put in a bid to acquire food-delivery and logistics startup Runnr. While the UberEATS offer values the Bangalore-based Runnr at $50 million, Zomato has pegged the valuation at $ 20-30million as per our sources.
Earlier, Runnr was formed after the merger of two of the most high-profile and well-funded startups of 2015, hyperlocal logistics Roadrunnr and food-delivery venture TinyOwl and had together raised over $50 million in funding.
After merging with TinyOwl, Runnr was focused on the consumer delivery business. Last year, the merged entity got $7 million from Nexus Venture Partners and Blume Venture Partners.
UberEATS recently started its operations in Mumbai with plans of expansion in top cities by the end of 2017. Zomato has raised $225 million so far while Swiggy has mopped up $75 million.
"They are also in the midst of discussions with financial investors for a $6-10 million funding round, " another person privy to the matter said.
There are three options on the table for the company but a decision is yet to be made. Both UberEATS and Zomato have put in a term sheet at different valuations.There may be a chance that the financing round may go through for now as the board decided not to go for a complete sale, a person close to the matter said on the condition of anonymity. A term sheet is a non-binding agreement for a potential investment.
Runnr started off afresh last year, as a consumer-facing food delivery firm, and was competing with the likes of Swiggy, Zomato and Foodpanda. It recently shuttered its consumer-facing business and has gone back to being a logistics company which is now delivering for the other food-delivery players. In fact, it has all the three food-delivery platforms as its clients.
Mohit Kumar, co-founder & CEO, Runnr did not respond to an emailed query. Emails and text messages sent to a Zomato spokesperson did not elicit a response while an Uber spokesperson replied saying, " this was a baseless speculation."
Last year Runnr had raised around $7 million in its new avataar from its existing investors Nexus Venture Partners and Blume Venture Partners while Sequoia Capital did not participate in the fund-raise.
The interest in Runnr comes at a time when logistics and delivery have emerged as the key factors in executing differentiated consumer experience for industry players. Swiggy, which is learnt to be clocking around 80,000 average daily orders manages its own deliveries while Zomato with 60,000 average orders has been outsourcing deliveries.
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