Gurgaon based hyper-local delivery startup Grofers has acqui-hired Bengaluru based business-to-business logistics startup Townrush. This comes shortly after its acquisition of food-tech startup SpoonJoy last week.
These acquisitions are primarily for obtaining the teams of these startups and both firms will no longer continue their existing business, and in the highest probability due to their inability to raise fresh funds and sustain operations.
We are not looking to get into the space each of these companies were in. However, their experience in building and running early-stage tech companies allows us to get hold of a large talent pool in one go,
said Albinder Dhindsa, co-founder & CEO of Grofers.
Both SpoonJoy and Townrush had raised seed capitals from the likes of Lightspeed Venture Partners (Townrush) and SAIF Partners and Flipkart’s Sachin Bansal (SpoonJoy). However due to already over-crowded segments of food-tech and hyper-local delivery, there has been a decline of investors interest in the startups from these segments due to which many new startups have been forced to shut down their operations within a year or even as early as 6 months.
For example, Townrush itself was founded this year in May by former Flipkart executives Saurya Prakash and Ashutosh Banerjee and former Facebook executive Tushar Bisht. It faced stiff competition from Roadrunnr, Parcelled, Shadowfax and Grab which are some of the prominent startups in the hyper-local segment. Also, all of these are heavily backed by major VC firms.
Similarly, restaurant aggregator Dazo and food ordering startup SpoonJoy had to close their operations within an year of their inceptions.
On the other hand, Grofers has emerged as one of the most heavily backed startups in the hyper-local segment which already has two funding rounds this year and is expected to close another round worth $120-million led by SoftBank Corp. It has raised $45 million so far, from Sequoia Capital and Tiger Global Management along with investment from Yuri Milner’s personal investment vehicle.