Thu. Mar 28th, 2024

Zomato, one of the most influential startups in the food-tech space in India, is reportedly in talks to acquire the delivery startup, Runnr. The size of deal is expected to be around ₹130 crores ($20 million) in all stock. If the acquisition falls into place, Zomato will further strengthen its presence in the food delivery space.

Zomato started as an aggregator of food outlets, however, off-late it has started food delivery. The delivery for orders placed on Zomato is enabled by Runnr and Grab. Before the talks with Runnr started, Zomato has also invested an undisclosed amount for a minority stake in Grab in September 2015.

Zomato is in competition with Swiggy for home delivery of food. Swiggy has been one of the most sought-after startups in the delivery space. Primarily because of the fact that it has survived the crunch and emerged as a winner because of its business plan and execution.

Zomato reported a total revenue of approx ₹300 crores ($49 million) in last fiscal year. Most of its revenue came from advertising business and food delivery.

On the other hand, Runnr was started in 2015. Backed by Nexus Venture Partners, Sequoia Capital and Blume Ventures, it has raised over ₹125 crores ($20 million) from investors. However, it has faced a lot of difficulties in raising funds in the recent past. One of the sources from inside the company added that the startup has significantly reduced its cashflow, however, the remaining funds will not last for over 6 months.

By Prithviraj Singh Chauhan

Part time journalist, full-time observer. Editor-in-Chief at The Indian Wire. I cover updates related to business and startups.