Zomato, the online food delivery giant, has decided to purchase hyper domestic logistics business enterprise Runnr in an all-stock contract as the Gurgaon-based food delivery and discovery platform gets ready to start making deliveries on its own. The transaction priced Zomato for $800 Million while Runnr, which is the result of combination of TinyOwl and Roadrunnr, 2 of the most well-financed business enterprises of 2015, had a startup worth $40 Million, sources claimed.
From the $40 Million credited to Runnr as its price, the investor team included $25 Million of shares held by employees and founders for $15 Million, it is learnt.
Runnr was also rumored to be sold to UberEATS, which started processing in the country recently, but those talks were proved to be false.
An official declaration of the acquisition is soon expected.
The contract comes at a period when Zomato is battling out with Swiggy, which delivers through its own pocket in spite the method not being money-making. It made $80 Million from South African Internet and media giant Naspers in past few weeks due to taking on an average more than 1 Lakh orders daily. Zomato conversely satisfies 80,000 orders on an average each day. Purchasing Runnr will assist Zomato deliver on its own fleet after coming so far. This approach has assisted it maintain its monthly expenses of $1 Million unlike Swiggy, which is anticipated to be spending about $2 to $3 Million each month.
Currently, third-party logistics players and restaurants deliver 80% of orders from Zomato, which is probably to change after this acquirement.
Earlier it was reported that UberEATS and Zomato were in talks with Runnr for a potential acquirement.
After the Tiny Owl and Roadrunnr amalgamation in 2016, Runnr began afresh with an all-new cap table, which is a documentation of all the top investors, as a consumer-facing firm of food delivery. In 2016, Runnr gathered around $7 Million from Blume Ventures as well as Nexus Venture Partners and was battling with the Zomato, Swiggy, and Foodpanda.
For now, Zomato, after the acquisition of Runnr is sure to dominate the market.