Bengaluru-based hyperlocal delivery startup DailyNinja has acquired Hyderabad-based 4amShop in an all-cash deal. The details of the deal remain undisclosed. This news comes nearly two months after DailyNinja had raised ₹20 crores ($3 million) in series A funding led by Saama Capital and Sequoia Capital in June 2018.
DailyNinja and 4amShop, both operate in the same hyperlocal space, making early morning deliveries of daily needs like grocery, milk, vegetables, etc to its customers’ doorsteps. This acquisition will help DailyNinja to expand its outreach in Hyderabad, as all customers of 4amShop will be moving to DailyNinja’s platform.
Talking about the acquisition, Sagar Yarnalkar, Chief Executive Officer of DailyNinja, said, “This acquisition seemed like a faster way for us to grow our user base in Hyderabad since the company follows a similar business model. As part of this deal, the founders of 4amShop will exit and their 2,000 customers will be transferred to our platform,”.
DailNinja was founded by Sagar Yarnalkar, along with Anurag Gupta in 2015. The startup uses a subscription-based model to cater to its customer’s daily grocery, dairy, vegetable, etc needs. While, 4amShop was founded by Shobanbabu Bukya, along with Yashaswy Rao and Malathi Bhukya in 2014.
Recently, Kishore Biyani‘s Future Group had partnered with New Zealand’s dairy giant Fonterra, as it forays into the dairy products category. Also, Flipkart has ventured into the online grocery business by launching Flipkart Supermart, making the space more competitive.
Other big players in the grocery space include BigBasket, Grofers, and Amazon. While in the dairy products space DailyNinja competes with the likes of Haryana-based Milkbasket, Delhi-based Farmery, and Bengaluru-based Doodhwala.