Mumbai-based food ordering app, TinyOwl has raised $15 million in its series B round led by Matrix Partners with participation from existing investors Sequoia Capital and Nexus Venture Partners. The raised funding will be used to expand its footprint to over 50 cities in the country, invest in technology and enhance the end-user experience.
Three days back, there was a news of Snapdeal founders Kunal Bahl and Rohit Bansal also planning to invest in it. However the startup has announced no mention of their participation in the round.
Commenting on the funds raised, Harshvardhan Mandad, Co-founder and CEO, TinyOwl said, “With our initial funding and unique business model, we have experienced immense growth in last one year in Mumbai itself. We plan to use the current funding for national level expansions aggressively and innovating on the products side to give seamless experience to the users.”
The app had recently raised $3 million led by Sequoia Capital and Nexus Ventures Partners. In August 2014, the company had received USD 1 million. Launched in March 2014 by five IIT Bombay alumni, the company enables consumers to order food through their mobile phones and gets it delivered to their doorstep. Currently, the app is available for Android and iOS users. Payments can either be made via the app using credit cards or through cash-on delivery.
It processes almost 2,000 orders every day. Currently TinyOwl has two products: TinyOwl – for food from nearby restaurants and TinyOwl HomeMade–for healthy food from local chefs.
In January this year, India based restaurant listing site Zomato had announced that it is in talks to raise about $100 million in next 30 days in fresh funding. In November 2014, the firm had raised $60 million in series E round led by Vy capital, Info Edge Limited and Sequoia Capital, and is planning to start food delivery service in March 2015.