Indian grocery delivery startup DailyNinja said to seek up to $20m in funding

Founded by Anurag Gupta (right) and Sagar Yarnalkar in 2015, DailyNinja runs a subscription model for grocery items.

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.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.