Post-acquisition, the founders of 4amShop will exit
2,000 customers of 4amShop will be transferred to DailyNinja
After Hyderabad, DailyNinja may expand into Gurugram
To expand its user base in Hyderabad, Bengaluru-based hyperlocal subscription delivery startup DailyNinja has acquired Hyderabad-based hyperlocal delivery startup 4amShop for an undisclosed amount in an all-cash deal.
Post-acquisition, the founders of 4amShop will exit and their 2,000 customers will be transferred to DailyNinja.
DailyNinja confirmed the development to Inc42.
Founded in 2015 by Sagar Yarnalkar and Anurag Gupta, DailyNinja provides early morning delivery everyday essentials and delivers Milk and Groceries to 30K households every day across Bengaluru and Hyderabad.
4amShop was founded in 2016 by Shobanbabu Bhukya and delivers household essentials with milk and groceries being the major products.
Sagar Yarnalkar, chief executive of DailyNinja said, “This acquisition seemed like a faster way for us to grow our user base in Hyderabad since the company follows a similar business model.”
DailyNinja expects to increase the number of deliveries to 150K in the next one year. Recently, the company raised $3 Mn from Saama Capital and existing investor Sequoia Capital. With the latest funding, the startup planned to expand its business by acquiring more customers across Bengaluru, Hyderabad, and Gurugram.
DailyNinja has raised $4.5 Mn funds till date from well-known angel investors Kunal Shah and Sandeep Tandon of Freecharge, Aprameya Radhakrishna of TaxiForSure, Anupam Mittal of Shaadi.com and others.
Micro Delivery Industry
In the micro delivery segment offering fresh and dairy products, DailyNinja competes with the likes of Milkbasket, Doodhwala, Town Essentials and RainCan.
Recently, Future Group was planning to start delivering milk, eggs, and bread at users’ doorstep every morning by launching 1,000 outlets under the Easyday, Nilgiris, and Heritage brands.
Beyond this, online grocery delivery startup BigBasket was looking to introduce a subscription programme for every day, essential items like milk, bread, etc.
According to a report by RedSeer Consulting, the Indian online grocery market stood at $1 Bn in 2017. A Goldman Sachs report estimates that the Indian online grocery market will reach $40 Mn (INR 270 Cr) by FY19, growing at a CAGR of 62% from 2016 to 2022.
Morgan Stanley further expects the online food and grocery segment to become the fastest-growing segments in India, expanding at a CAGR of 141% by 2020 and contributing $15 Bn or 12.5% of overall online retail sales.
As DailyNinja leverages 4amShop to expand its operations in Hyderabad, the next startup it taps to fulfill its planned expansion in Gurugram remains to be seen.
[The development was reported by ET.]
