TinyOwl raises Series B funding from existing investors Norwest Venture Partners and Sequoia Capital.
TinyOwl Technology, a food ordering startup from Mumbai. The company has an Android App enables users to order food via their smartphones. They have developed an algorithm which determines the customer’s locations and list the restaurants in the customer’s vicinity.
The venture started in March 2014 by a group of ex alumni of Indian Institute of Technology, Bombay. TinyOwl now offers two variants one is TinyOwl for food from nearby restaurants, and TinyOwl HomeMade for healthy food from local chefs (like the homemakers who want earn some extra bucks in their free time).
TinyOwl has received $4 million as part of Series ‘A’ funding from Norwest Venture Partners and Sequoia Capital. On Feb 26, 2015 the company raised a fresh funding of $16 million as Series ‘B’ from existing investors and with a new venture capitalist Matrix Partners joining the process.
Rohit Bansal of Snapdeal and Kunal Bahl are the angel investors of the TinyOwl. The company is going to adopt revenue model. They will charge the restaurants 10 to 20 percent on each order from the restaurants that enters a deal with the company. Customer can pay for the food order by either cash on delivery or thru credit card.
“We have seen immense growth in the last one year in Mumbai. TinyOwl has partnered with more than 4,000 restaurants,” said Harshvardhan Mandad, Co founder and Chief Executive Officer.
“We believe that there will be significant value creation in online food ordering in India, and a mobile only approach is the way to win in the space. TinyOwl is a part of our broader portfolio of investments in the local services offline to online space, which we think will be an important area going forward,” said Rishi Navani, Co founder and Managing Director, Matrix India after funding.
“TinyOwl has made significant progress in the last few months – they have worked closely with restaurants and have also built a delivery infrastructure to ensure that more people can order from the convenience of their own homes. TinyOwl is live all over Mumbai and we are excited that they will be available in other major cities,” said Gautam Mago of Sequoia India.
“TinyOwl is changing the way Indians dine in at home and office with their innovations across the value chain to delivery. We continue to be excited to work with them,” said Suvir Sujan, co Founder and Managing Director, Nexus Venture Partners.
TinyOwl Technology will utilise the funds to expand its footprint to over 50 cities and invest in technology. The company claims they are clocking 3,000 to 5,000 transactions per day and each transaction is of Rs. 300.
However the company has to face stiff competition from other online food portal such as FoodPanda and Holachef who works on the same lines.