Goodbye, TinyOwl!

Mumbai-based food delivery startup TinyOwl calls off in 10 cities of India, except Mumbai, being the 11^th city, as per the reports. TinyOwl is a food ordering smartphone app that had raised more than $27 million from investors including Sequoia Capital and Matrix Partners. The app had notified its users a week back that it will discontinue the food delivery services from May 22. However, the notification was not seen in some areas of Mumbai. TinyOwl had plans of shutting down from the time they tied up with Roadrunnr, a Mumbai startup offering hyperlocal on-demand delivery service .

Recently, TinyOwl encountered some operational troubles despite of strong financial support from marquee investors. High cost of logistics and an oversaturated market are also the reasons for TinyOwl to break down. According to Bloomberg, there were more than 400 restaurant delivery startups in India over the last 3 years, raising a total funding of $120 million. Last year, the startup had to lay off its 300 employees.

Zomato and Foodpanda were its biggest rivals. Gaurav Choudhary is the co-founder of TinyOwl. News is yet to come out about the deal between RoadRunnr and TinyOwl.

Takeaways:

• Mumbai-based food delivery startup TinyOwl calls off in 10 cities of India, except Mumbai, being the 11^th city, as per the reports.
• Recently, TinyOwl encountered some operational troubles despite of strong financial support from marquee investors.
• High cost of logistics and an oversaturated market are also the reasons for TinyOwl to break down.