Food delivery platform Runnr, the combined entity which was formed after the merger of Roadrunnr and TinyOwl, has raised around $7 million co-led by existing investors Nexus Venture Partners and Blume Venture Partners, according to a Times of India report quoting sources.
However, Sequoia Capital, which was also an early invest along with Nexus in both hyperlocal logistics company Roadrunnr and TinyOwl, did not participate in this round.
According to the sources, Sequoia has taken a backseat in investing in Runnr because it is also an investor in its rival, food discovery and delivery firm Zomato.
In June this year, Roadrunnr said it had acquired food ordering firm TinyOwl Technology Pvt. Ltd and has transitioned into a food ordering and delivery platform under a new brand Runnr.
Runnr, which has started operating in parts of Bengaluru and Mumbai, is catering to consumers as well as executing deliveries for restaurants which are not on its platform. It plans to go live on the consumer side in Delhi soon, the report said.
Tiny Owl and Runnr had scaled up quickly but failed to sustain the momentum as unit economics failed. The inability to raise fresh funds added to their woes leading the two companies to resort of layoffs and scaling down operations. The two companies together had raised around $50 million from venture capital firms.