Bengaluru-based online grocery startup BigBasket has acquired hyperlocal delivery startup RainCan, as it looks to enter subscription-based hyperlocal delivery.
While the details of the deal remain undisclosed, the acquisition has been confirmed by RainCan co-founder Abhijeet Kumar. Explaining further he said, that it is a 100% acquisition, where all the investors of RainCan have exited.
RainCan was founded by IIT Bombay alumni Abhijeet Kumar and Mahendra Singh in 2015. Following a subscription-based model, the startup allows customers to choose household essentials like dairy products and groceries, to be delivered daily at their doorsteps.
Talking about the acquisition, Abhijeet Kumar, Co-Founder, RainCan, said, “We have informed our customers about the acquisition. We will continue with our micro-delivery operations. Now, as part of BigBasket, we will go multi-city to expand our operations pan-India”.
RainCan last raised ₹1.75 crores in a funding round from Aniruddha Malpani and Prabodh Agarwal, Chief Financial Officer of IIFL Holdings Ltd Group, in July 2017.
With the acquisition, BigBasket has rebranded the RainCan app as BBDaily and will be launching a subscription-based service, leveraging RainCan’s network and technology platform to deliver daily household essentials like milk, bread, fruits, and vegetables.
BigBasket is an experienced player in the online Indian grocery domain, with the addition of RainCan, BigBasket will be looking to strengthen its subscription-based hyperlocal delivery business.
Lately, there has been a rush in the online delivery space to focus on the hyperlocal delivery to further reach a wider customer base and penetrate deeper to expand outreach to new customers.
BigBasket last raised $300 million in a funding round from Alibaba Group, along with participation from other investors including, Sands Capital Ventures, International Finance Corporation, Bessemer Venture Partners, and Abraaj Group, in February 2018.
Recently, Hyperlocal delivery startup DailyNinja acquired WakeupBasket, in order to strengthen operations in Hyderabad.