As a part of its aggressive foray into 50 more Indian cities, mobile-only food ordering platform TinyOwl has raised $15 million in a Series B round led by Matrix Partners India with the participation from existing investors Sequoia Capital and Nexus Venture Partners.
Mumbai-based startup, TinyOwl stepped into the food delivery business last year and has been successful so far to lure in large and valuable investors including Snapdeal co-founders. Now that the company has been able to collect a enormous amount of funding, it looks forward to expand its services to 50 more Indian cities and compete with the likes of Rocket Internet-backed FoodPanda.
Rishi Navani, co-founder and managing director, Matrix India said-
We believe that there will be significant value creation in online food ordering in India, and a mobile-only approach is the way to win in the space. TinyOwl is a part of our broader portfolio of investments in the local services offline-to-online space, which we think will be an important area going forward.
TinyOwl’s service allows customers to order take-out via its iOS and Android apps. Consumers can manage the entire process including selecting and ordering the dishes and tracking the delivery. Users can either make payments through their credit card or opt for cash-on-delivery. TinyOwl has been able to expand across 4,000 restaurants in Mumbai and does over 2,000 orders a day.
The company, for now, is running on a no profit basis and looks forward to change that model soon. It may start charging 10% to 20% cut to the restaurants that signs up with the TinyOwl. The app-based startup raised a $3 Million last December.