Sequoia Capital-backed milk and grocery delivery startup DailyNinja is in early talks to raise $18-20 million ( ₹128-142 crore) in fresh funding as competition intensifies in a sector that is witnessing a surge in investor interest for the past year, said two people aware of the development.
Founded by Anurag Gupta and Sagar Yarnalkar in 2015, DailyNinja Delivery Services Pvt. Ltd runs a subscription model for grocery items such as milk, bread, eggs, fruits and vegetables in Bengaluru, Chennai, Hyderabad, Mumbai and Pune.
It will use the fresh funds to enter new cities including Delhi-NCR and also scale up its existing business, said the first person cited above, requesting anonymity. DailyNinja will look to grow its user base more than threefold from 60,000 currently to 200,000 over the next two years, the person said. Existing investors—Sequoia, Matrix Partners and Saama Capital—are likely to participate in the current round, the person said.
DailyNinja raised an undisclosed sum last September in a round led by Matrix Partners, following a $3 million funding in June from Saama Capital and Sequoia Capital Partners.
Matrix declined to comment, while Sequoia and Saama did not respond to mails. DailyNinja’s Yarnalkar denied the new fundraising plan in an emailed response.
From early to late stage, hyperlocal delivery firms have become an investor favourite, driven by the large and fragmented market for groceries, dominated by mom-and-pop stores and local grocers.
Milk delivery startups such as Milkbasket, Country Delight and Doodhwala, and smaller players, have raised funds from venture capitalists.
While Country Delight raised $10 million led by Matrix in January this year, Milkbasket raised $7 million last December, led by Mayfield Advisors. Doodhwala raised $2.2 million last February from impact investor Omnivore Partners.
This article was first published on livemint.com.