wordpress blog stats
Connect with us

Hi, what are you looking for?

TinyOwl raises Rs 100 cr in Series B funding led by Sequoia Capital and we do some math

TinyOwl

Online food delivery service TinyOwl has raised Rs 100 crore in series B funding from Matrix Partners, Sequoia Capital and Nexus Venture Partners, reports TechCruch. The Mumbai-based  startup raised $3 million in a series A round of funding from Nexus Venture Partners and Sequoia Capital earlier in last year.

Currently active only in Mumbai, the company has an aggressive expansion plan and wants to roll out to 50 cities in India before the end of the year. TinyOwl’s service allows customers to order take-out via its iOS and Android app. It also has two products; TinyOwl for food from nearby restaurants and TinyOwl HomeMade for healthy food from local chefs. Users can either make payments through their credit card or opt for cash-on-delivery. TinyOwl also says that it take about 3,000-5,000 orders per day and covers about 4,500 restaurants.

Here’s our math

TinyOwl has a team of 400 plus people and is currently active only in Mumbai, and if it wants to follow through its expansion plan, then its going to be an uphill task. We feel that most of the funding will be used up for paying salaries and administrative functions. Here’s our rough estimate and is in no way completely accurate: Rs 100 crore divided by 400 employees gives us Rs 25 lakh per employee. That divided by about 12 months gives us about 2.08 lakh.

We know that number is a bit too high to be giving as a salary figure for an individual employee, but once you factor in the administrative costs and rent for the offices, we don’t think the round of funding would be able to fuel their growth plan. We’re basing this assumption on the fact that Zomato, following their acquisition of Urbanspoon, is looking for another round of funding to expand in the U.S. and is looking to hire 200 people for the same. We’ve reached out to TinyOwl’s PR team for a comment and will update on the same.

Advertisement. Scroll to continue reading.

The startup also does not have any revenue streams but did mention to TechCircle that it will be charging a commission of 10-20% to restaurants later this year.

Competition

Zomato has mentioned that it will be rolling out food delivery this year and the company already has presence in 36 cities in India. So TinyOwl will have to make a move quickly against them.

There’s also Rocket Internet-backed FoodPanda which took over UK-headquartered JustEat’s India operations. This deal was worked out sometime after FoodPanda had acquired Delivery Hero-backed TastyKhana in November last year.

On home-cooked meals, there’s Mumbai-based Holachef which raised Rs 2 crore funding from India Quotient.

Advertisement. Scroll to continue reading.
Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

Views

News

The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.

News

When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.

News

The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.

News

In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...

News

By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like

Advert

135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...

News

Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

News

By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...

News

Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Name:*
Your email address:*
*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ