TinyOwl, a India-based totally restaurant delivery provider that has raised more than $ 27 million from investors including Sequoia Capital and Matrix companions, has reportedly stopped service in all cities with the exception of for Mumbai.
users of TinyOwl’s smartphone app started seeing a notification last week that service might be discontinued after could 22. in keeping with Medianama, the notification is seen in every single place apart from for some areas of Mumbai, where TinyOwl is headquartered. The startup used to be previously to be had in eleven large Indian cities.
— Pranjal Choudhury (@pranjal_1981) could 14, 2016
TechCrunch has asked TinyOwl for comment and can update this submit if we hear back from them.
TinyOwl is among a few meals supply startups in India that have just lately run into operational troubles regardless of fortify from marquee investors. concerns embrace the high value of logistics and a oversaturated market (Bloomberg stories that more than four hundred restaurant supply startups have been founded in India over the last three years, elevating a total of $ one hundred twenty million in funding).
Like Zomato and Foodpanda, two of its largest opponents, TinyOwl was once pressured to carry mass lay offs final 12 months. In TinyOwl’s case, the firings reportedly resulted in one among its founders, Gaurav Choudhary, being detained for 2 days by means of laid-off staff over submit-dated tests.
TinyOwl, alternatively, will have any other shot at existence. past this month, a few reviews emerged that the startup will merge with logistics firm Roadrunnr in an all-inventory deal and create a new meals delivery service referred to as Runnr. the two companies, which might be both backed by way of Sequoia and Nexus undertaking companions, have yet to formally verify the deal.
Partnering with Roadrunnr, which handles final-mile deliveries for e-commerce and food supply companies, may give TinyOwl an advantage over its opponents if it relaunches service. Roadrunnr, however, is coping with problems of its own. last month Mint pronounced that it is going to exit the e-commerce trade after failing to boost more funding. TechCrunch has additionally contacted Roadrunnr for comment.
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