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B2B online service provider platform for hyperlocal logistics services Roadrunnr and online food ordering platform Tinyowl, are in early stage talks to merge in an all-stock deal, reported ET.

This planned talk comes at a time when the consumer internet businesses are getting into a turmoil. Both companies with common investors – Sequoia & Nexus, aim to come out as an integrated hyperlocal delivery service, to win more customers and expand their business.

Currently, both companies have cash to sustain their operations for at least 10 months. In case the talks prove successful, the combined entity may able to raise a fresh funding of about $40 Mn, as per the market speculations.

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According to a report by Morgan Stanley, online penetration in food and groceries is expected to increase from 3-5% in 2014 to 25-30% in 2020.

Bangalore-based Roadrunnr 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. The startup serves to merchants, restaurants and ecommerce companies, managing their deliveries in a cost effective manner, while adhering to service level agreements. It claims to be doing about 25,000 deliveries per day on average with a fleet of nearly 5,000 delivery boys.

As for TinyOwl, it was founded in 2014 by Harshvardhan Mandad, Gaurav Choudhary, Saurabh Goyal, Shikhar Paliwal and Tanuj Khandelwal. Recently, the company had raised $7.6 Mn. Prior to that, it raised $15 Mn in Series B round.

In December 2015, it was also reported that Rocket Internet backed FoodPanda, a food ordering platform, was in final stage of talk to acquire TinyOwl. However, TinyOwl declined the reports.


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