Mumbai-based on-demand delivery startup Scootsy has raised $3.6 million (Rs 23 crore) in a bridge round of investment from Bangalore-based Agnus Capital, the family office of the promoters of pharmaceutical firm Strides Group, and Singapore-based investment firm Khattar Holdings, a company statement said.
The startup will use the new capital to strengthen its logistics, technology and delivery platform. It will also use the funds to launch Scootsy Express, a service that will deliver food to corporate offices across the city and Scootsy Pop-Up, a kitchen and distribution platform that will be available to brands across the country, the press note added.
Mumbai-based legal services firm RGM Legal acted as the advisor in the deal.
Scootsy Logistics Pvt. Ltd, which is a part of Mumbai-based incubator firm Ant Farm, delivers a wide variety of products, such as food, fashion apparel and accessories, home décor, skin care, gifts, toys, books, and more. Currently operational in Mumbai, the startup claims to have a user base of 200,000 users.
Founded in November 2012 by former chief of Indiatimes, Rishi Khiani, Ant Farm Business Incubator Pvt Ltd is a hybrid startup platform that helps entrepreneurs ideate businesses or scales up existing ideas and sees through its execution.
In February 2015, Ant Farm had acquired city-based online food ordering venture Meals on Wheels, which it brought under Scootsy.com. The on-demand delivery startup is run by Sandeep Das, who previously served as the chief operating officer and head of business at local search site Burrp and the defunct e-commerce firm AskMe.
Horizontal players such as Amazon also have a presence in the hyperlocal delivery space with Amazon Now. Another startup in this space is Bangalore-based ZN Retail Pvt Ltd, which runs online grocery property ZopNow, which in 2015 raised $10 million (Rs 62 crore) from San Francisco-based Dragoneer Investment Group with participation from existing investors Accel Partners, Qualcomm Ventures and Times Internet.
The hyperlocal delivery segment has seen a number of casualties as investors have turned cautious due to a lack of a sustainable business model in the space. In March this year, Chennai-based hyperlocal delivery startup Genie Solutions Pvt. Ltd shut its operations after it failed to raise funds.
Over the past year-and-a-half several other startups in the segment, including well-funded ventures like PepperTap and LocalBanya have also shut shop.
The article has been updated to include the legal firm that advised on the deal
Like this report? Sign up for our daily newsletter to get our top reports.
Leave Your Comment
12 months ago
Agnus Capital, the family office of promoters of pharma firm Strides Group, has...
1 year ago
Designer-turned-entrepreneur-turned-CEO-turned-entrepreneur. That’s what...
2 years ago
Advertising technology firm Fork Media Pvt. Ltd has acquired a controlling stake...