BigBasket buys local delivery startup Delyver. Bengaluru based SuperMarket Grocery Supplies P Ltd which owns and operates BigBasket.com. The acquisition is said to cash and stock deal; however it seems to be 50% cash and 50% stock deal.
For BigBasket this acquisition provides increased depth in their delivery services and also strengthens its ability to deliver quickly in Bengaluru. BigBasket is in superfast mode with tying up 1800 grocery stores for grocery delivery. Delyver will continue to work as separate entity while BigBasket will use fleet of two wheelers of Delyver to facilitate on time delivery. Employees of Delyver will be retained by BigBasket.
BigBasket Hari Menon says “Delyver has an expertise in two-wheeler delivery. They will handle the one-hour express delivery in the six cities and two-hour delivery in the 50 new cities,” Menon said. “Though it is present only in Bengaluru now, Delyver will scale to the 50 cities as and when BigBasket enters a new market.”
BigBasket is backed by serial entrepreneur K Ganesh, is also an investor in Delyver too. Delyver started by Indian Institute of Lucknow alumnus Reebu Varghese, Afsal Salu and Praful Thachery in 2010. Delyver is specialised in delivering orders within an hour from stores across several categories such as food, vegetables and flowers. The company is operational 40 neighbourhoods in Bengaluru city. On an average Delyver handles 50,000 orders each month.
Reebu Varghese, Delyver’s Chief Executive Officer said after acquisition “The acquisition gives us access to capital and support from the BigBasket team. They are already in six cities, hence, for us to scale to these cities will take very little time. We already have infrastructure support there.”
BigBasket was founded by Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh and Abhinay Choudhari is likely to use the expertise of Delyver’s hyperlocal delivery to roll out one hour delivery services in the cities of Bengaluru, Hyderabad, Chennai, Delhi, Pune and Mumbai where they are present with operations.
The founders of BigBasket are the pioneer in grocery delivery. India’s first e-commerce website FabMart.com was founded by them in 1999. Later they started Fabmall – Trinethra chain in south India with 200 grocery supermarkets stores. However it was sold to Aditya Birla Group in 2006 which was later renamed ‘More’ stores.
At one point of time, hyper local delivery was considered to be taboo and not to touch. Due to innovations in technology more and more players are entering the hyper local delivery segment. Companies like Amazon’s Karana Now are working on innovative strategies to deliver daily use products at door steps. Ola has started its delivery of groceries; PayTM is testing waters of local delivery.
Already Grofers is making waves in the local delivery segment along with PepperTap and LocalBanya. Grofers is spreading their services quickly and plans to add one city every week. Most of these startups are funded by ventures capitalists like Sequoia Capital, Helion Venture and Tiger Global to name a few.