Bangalore-based online grocery retailer BigBasket has acquired hyper local delivery startup Delyver in a cash and stock deal for an undisclosed amount, reports VCCircle. With this acquisition, BigBasket will add to its delivery service depth, enabling it to expand its reach in Bangalore, where Delyver is based out of as well.
BigBasket will foray into 60-90 minute delivery, which will be handled by Delyver. The VCCircle report claimed that BigBasket was doing around 6,000 orders daily with an average ticket size of Rs 1,500 per customer.
Delyver to expand to other cities
Delyver will continue operating in the hyperlocal space as an independent entity, with BigBasket pumping funds into it for geographical expansion (8 major cities and 50 Tier-II cities) and adding employees. Delyver will also add grocery and other categories to its delivery depth.
BigBasket’s grocery store tie up for private label products
Last week, BigBasket announced that it was tying up with around 1,800 grocery stores to sell its private label products at their offline stores. This would include grocery products from brands like Royal, Popular and Fresho. BigBasket mentioned that it would also launch another private label, a coffee brand, sometime this week, and eventually venture into flavored tea and cookies. Interestingly, the company mentioned that its private labels currently account for around 35% of its revenues.
Additionally, the company was looking to expand to 50 new locations within a year. These locations would be clustered in groups of 5-6 cities, which would then be served by six central locations.
Funding from Helion, Zodius, Ascent and LionRock
In September last year, BigBasket raised Rs 200 crore investment in a round led by Helion Ventures and Zodius Capital and participation from existing investors Ascent Capital and LionRock Capital. The company said then that it would use the funds to expand operations to 10 Indian cities by the end of this year. Prior to this, BigBasket had raised $10 million from Ascent Capital in March 2012. GrowthStory’s Meena and K Ganesh had also invested in this venture.
Founded in December 2011 by Fabmall founders VS Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh and Abhinay Choudhari, BigBasket currently operates in Bengaluru, Hyderabad, Chennai, Delhi, Pune and Mumbai.
Delyver’s previous funding
In December last year, Delyver secured over Rs 6.5 crore in a round of funding from an undisclosed VC fund in the city. The startup had then planned to use the funds to expand its operations to 20 cities by this year. Bangalore-only Delyver was founded by in 2010 by Salu, Reebu Varghese and Praful Thachery. It is a hyper local ecommerce platform that connects offline retailers to customers in their neighbourhood and delivers using its own logistics.