Bangalore-based hyperlocal delivery provider Roadrunnr and food delivery startup TinyOwl are reportedly in an early stage talk for an all-stock deal merger.
The two companies, both backed by Sequoia Capital and Nexus Venture Partners, aim to create an integrated hyper-local delivery service, to get more customers and expand their business.
In case the talks prove successful, the combined entity could explore several options including launching food ordering and delivery services and may also expand to categories beyond food like the launch of bike taxis, ET reported. They may also be able to raise a fresh funding of about $40 million, as per market speculations.
Reportedly, both companies have enough cash to sustain operations for another 10-12 months.