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Grofers in talks to buy Bengaluru-based SpoonJoy

  • Hyperlocal
    delivery start-up Grofers is in advanced talks to buy Bengaluru-based SpoonJoy,
    as the food ordering app struggles to raise money from new and existing
    investors, the
    Mint reported, quoting
    people familiar with the development.
    • Hyperlocal
      delivery start-up Grofers is in advanced talks to buy Bengaluru-based SpoonJoy,
      as the food ordering app struggles to raise money from new and existing
      investors, the
      Mint reported, quoting
      people familiar with the development.
    •  

    •  
    • Grofers, run
      by Locodel Solutions Pvt. Ltd, is expected to sign a so-called acqui-hire deal
      with SpoonJoy, the sources said. Since acqui-hire is a deal done primarily to
      access expertise of the acquired firm’s staff, operations of SpoonJoy will be
      shut down once the deal is done.
    •  
    • “We are
      currently in discussions with SpoonJoy and hope to complete the transaction in
      the next few weeks,” confirmed Albinder Dhindsa, co-founder at Grofers.
    •  
    • SpoonJoy
      declined to comment.
    •  
    • As investor
      interest starts to ebb in the crowded food ordering sector, the market is
      expected to see more such consolidation or strategic investments.
    •  
    • Since the
      start of the year, investors have pumped $150 million into 20 food-ordering
      (and food-delivery) start-ups.
    •  
    • Food-tech
      start-up TinyOwl Technology Pvt. Ltd has been cutting jobs and freezing
      expansion plans, as the company faces delays in closing its next round of
      funding, three people familiar with the matter said.
    •  
    • Earlier this
      month, another such start-up, Dazo, decided to shut shop barely a year after it
      started operations.
    •  
    • 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.
    •  
    • Dhindsa
      clarified that the acquisition of SpoonJoy would not mean Grofers’s expansion
      into the food delivery space. “We are not looking at the food delivery
      business. Product and food delivery are not compatible businesses,” he said.

     

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