Hyperlocal subscription-based delivery startup Daily Ninja has raised $3 million from Saama Capital and existing investor Sequoia Capital. The company provides early morning delivery of everyday essentials across Bangalore and Hyderabad. The Bangalore-based company was founded by Sagar Yarnalkar and Anurag Gupta in 2015. It had angel funding of undisclosed amount from angel investors including Kunal Shah and Sandeep Tandon of Freecharge, Aprameya Radhakrishna of TaxiForSure, Anupam Mittal of Shaadi.com and others. Then it raised $1.5 million in October 2017 from Sequoia Capital.

With a total of $4.5 million funds, the company wants to expand its offerings and geographies, the company said in a statement.

Anurag Gupta, Co-Founder of Dailyninja added that this round will help the company to achieve the objective of reaching to 1 lakh deliveries a day over the next 12 months. “We plan to bring Dailyninja to Hyderabad and Gurgaon soon,” he added.  The company claims that it currently delivers Milk and Groceries to 25000 households every day across the 2 cities.

Competition in hyperlocal grocery

DailyNinja competes with players like Milkbasket, BigBasket, Grofers, Amazon amongst others. With big players eyeing the space, the competition is going to be more fierce.

Kishore Biyani-led Future Group will reportedly start its hyperlocal grocery delivery by end of this month. Initially, it will deliver items milk, eggs and bread (apparently in the morning), and later users will be able to get fresh fruits and vegetables along with other grocery items.

A week ago, Amazon rebranded its app-only grocery service to Prime Now from Amazon Now, and has expanded its product category along with new time slots for the users. Amazon said it is starting delivery between two new time slots: 6 am to 8 am, and 10 pm to 12 midnight for it Prime Now users. For Prime members, Amazon has launched 2-hour express delivery services anytime between 6 am to midnight.

BigBasket and Grofers too received government’s approval last year to retail food products manufactured and produced in India. Flipkart — which was recently acquired by Walmart — is reportedly planning an aggressive grocery push this year. According to this ET report, Flipkart will launch grocery services in five cities including Chennai, Mumbai, Delhi–NCR and Pune by July, and is expected to offer steep discounts like 25–50% on groceries.

Food ordering and delivery platform Swiggy too is eyeing hyperlocal delivery segment by adding groceries and medicines with the new service will be called ‘Dash’, and is expected to start its pilot operations in next few months. The service apparently aims to utilise its delivery workforce of 30,000 people especially between 2 pm to 6 pm, which are usually lean hours. Entrackr reports that Swiggy is in advance stages of acquiring Mumbai-based milk delivery Suprdaily.