Food delivery platform Runnr, the combined entity which was formed after the merger of Roadrunnr and TinyOwl, has raised around $7 million co-led by existing investors Nexus Venture Partners and Blume Venture Partners, as reported by TOI. Their former investor Sequoia Capital did not participate in this round. Sequoia is also an investor in its rival, food discovery and delivery firm Zomato.
In June 2016, Roadrunnr had acquired food ordering firm TinyOwl Technology Pvt. Ltd and has transitioned into a food ordering and delivery platform under a new brand Runnr. Bengaluru-based Runnr was founded in 2015 by Mohit Kumar and Arpit Dave, it is a B2B hyperlocal on-demand delivery service that helps book, track and manage deliveries at scale.
Previously, the founders had secured $15 million, backed by investors such as Sequoia Capital, Yuri Milner, Nexus Venture Partners, Apoletto Asia, and Emerging Markets Internet Fund.
Runnr plans to go live on the consumer side in Delhi soon.
From last couple of months, food tech startups are facing a tough competition in the market. Four startups in the hyperlocal food delivery space have reportedly shut down their businesses in the last few months. In May 2016, Gurgaon-based food-tech startup, Yumist, stopped its services in Bangalore. Recently, restaurants associated with Swiggy and Shadowfax pulled back from having their orders delivered by the startups.
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