According to a new report, Rocket Internet-backed FoodPanda is on a look out to pick up stake in Mumbai-based food ordering app TinyOwl. In line with our earlier reports FoodPanda had wished the same earlier, however, TinuOwl denied any such thing at that time and said that they have no plans to be sold out as it had raised funds at that point of time.
TOI reports that the deal is supposed to see a financial investment rather than just a strategic one.
Further, according to Inc42 sources, the deal was closed last week. We reached out to both the companies but did not elicited any response from FoodPanda, however, TinyOwl denied any such thing.
Founded in 2014 by five IIT-Bombay graduates, the online food ordering app, TinyOwl, is one of the fastest growing food ordering startups. It has its services operating in six major cities including Mumbai, Hyderabad, Pune, Bangalore, Gurgaon and Chennai with further plans to expand in around 50 cities by the end of this year. The startup claims to fulfill approximately 3,000-5,000 orders everyday delivering from about 4500 restaurants.
Earlier this year, TinyOwl had raised its Series B round of funding around $15.6 Mn series B round of funding from Matrix Partners, Nexus Venture Partners and Sequoia Capital. Prior to this the food ordering app had also raised $3 Mn in a Series A round of funding from the same investors.
FoodPanda’s investment in TinyOwl is estimated to be a part of a $40 Mn, financing round which it raised recently. Prior to this, FoodPanda acquired the Indian operations of UK-based JustEat and Pune based food delivery portal TastyKhana.