Food delivery startup TinyOwl reportedly shuts down in all cities except Mumbai

Foodies all over India are well aware of the name, TinyOwl. Well, here's some sad news for all regular TinyOwl users. The Indian-based restaurant delivery app service that had recently raised more than a whopping $27 million from investors including big names like Matrix Partners and Sequoia Capital, has now decided to put a stop to its service in all its functional cities except for Mumbai. A week back some of the loyal TinyOwl users were shocked to see a notification stating that their services will be discontinued after May 22 in their area. The notification was visible everywhere except for some areas of Mumbai, where the company is headquartered. Prior to this, the startup was functional in eleven cities all around India. The food delivery app is one amongst many Indian startups that have recently been witnessing troubles times despite of receiving substantial support from investors. Most experts believe that this is because of the incapability of these startups to effectively manage their operations. Last year, the startup was in limelight when Gaurav Choudhary, one of its founders, was detained for two whole days by few of the startup's ex-employees after they were unceremoniously fired with post-dated checks. Well, it does seem a little gloomy for TinyOwl but all is certainly not lost. According to tech rumour mills, the startup is soon going to announce its merger with Roadrunnr, a logistics firm handling the last-mile deliveries for various food and e-commerce delivery companies. The two companies, which are both backed by Nexus Venture Partners and Sequoia, are expected to enter in an all-stock deal and give birth to a new food delivery service, Runnr. Whether this deals materialises or not, is something we will have to wait and watch. Further, for Roadrunnr itself, the path hasn't been rosy for quite sometime now. Last month, there were several news-pieces floating in the media about how the logistics firm was planning to exit the e-commerce business after it failed to raise more funding.