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Grofers acquires logistics firm Townrush

  • Hyperlocal
    delivery start-up Grofers has bought business-to-business logistics service
    provider Townrush, closing its second acquisition in a week, the
    Mint reported, quoting sources.
  •  
  • The
    Gurgaon-based company, owned by Locodel Solutions Pvt. Ltd, had said it was in
    advanced talks to buy Bengaluru-based food tech start-up SpoonJoy (Emvito

    • Hyperlocal
      delivery start-up Grofers has bought business-to-business logistics service
      provider Townrush, closing its second acquisition in a week, the
      Mint reported, quoting sources.
    •  
    • The
      Gurgaon-based company, owned by Locodel Solutions Pvt. Ltd, had said it was in
      advanced talks to buy Bengaluru-based food tech start-up SpoonJoy (Emvito
      Technologies Pvt. Ltd).
    •  
    • Both
      acquisitions are essentially acqui-hires, where a company is bought for the
      team instead of its existing business. SpoonJoy and Townrush will cease to
      exist as independent entities.
    •  
    • The
      acquisition of SpoonJoy is expected to largely be a stock deal with some
      component of cash being involved. About 40 people from SpoonJoy are expected to
      join Grofers in the tech and operations departments.
    •  
    • Founded in
      May this year by former Flipkart executives Saurya Prakash and Ashutosh
      Banerjee and former Facebook executive Tushar Bisht, Townrush had raised an
      undisclosed amount in a seed round from Lightspeed Venture Partners.
    •  
    • Grofers is
      one of the most well-capitalized start-ups in the hyperlocal delivery segment,
      having raised $45 million from Sequoia Capital and Tiger Global Management.
    •  
    • The early
      sell-out of SpoonJoy and Townrush reflects a grim scenario where institutional
      capital is no longer easily accessible, which was the case earlier this year
      when a string of start-ups in the hyperlocal delivery and food tech segments
      secured funding. But many of these companies are struggling to raise follow-on
      rounds, and thus finding it difficult to keep themselves afloat.

     

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