Grofers Acqui-hires SpoonJoy and Townrush

Hyper-local grocery and fresh food delivery platform Grofers has expanded its talent pool by acqui-hiring Bangalore-based food delivery app SpoonJoy and B2B logistics startup Townrush.

(source)

“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.” -Dhindsa(source)

The financial figures of the deal has not been disclosed yet.

Commenting on the acquisitions Albinder Dhindsa, Co founder and CEO of Grofers said, “While at SpoonJoy, we were able to on-board the team entirely, we got to look at Townrush and pick some of the talent there.”

He added, “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.”

Spoonjoy raised $1 million from SAIF Partners in May 2015. However, as the company could not raise further investment, it had to shut down its operations in Delhi and parts of Bangalore.

Similarly, due to shortage of fund, logistics service provider, Townrush too was reportedly on the verge of shutting down. In July, the startup had raised an undisclosed amount in seed funding from Lightspeed Venture Partners.

The two acqui-hires come at a vital point for Grofers, which had raised $35 million more from its existing investors Tiger Global Management and Sequoia Capital in August. The company had put its operations on hold in Delhi and parts of NCR last week to mitigate last-mile delivery issues. Nevertheless, it resumed the very next day.

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India has witnessed a sudden surge of grocery startups. A couple of the players in this space, competing fiercely with Grofers are- PepperTap, ZopNow. Further, inventory-led firms such as BigBasket, LocalBanya and EkStop, could also be considered as Grofers’ competition.

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