The transaction valued Zomato at $800 million while Runnr, had an enterprise value of $40 million
Online food dicovery and delivery platform, Zomato has agreed to buy hyper local logistics startup, Runnr in an all-stock deal it prepares to start fulfilling deliveries on its own.
The transaction valued Zomato at $800 million while Runnr, which is the merged entity of Roadrunnr and TinyOwl, had an enterprise value of $40 million.
Out of the $40 million ascribed to Runnr as its valuation, the investor pool comprised $25 million with the common pool (including shares held by founders and employees) being valued at $15 million.
The deal comes at a time when Zomato's fighting it out with Swiggy which delivers through its own fleet despite the model not being cost effective. It raised $80 million from South African media and internet giant Naspers last week on the back of clocking more than 1 lakh daily orders on an average. On the other hand, Zomato fulfills 80,000 average orders every day.
Acquiring Runnr will help Zomato deliver on its own after having steered clear from it so far. This strategy has helped it keep its monthly burn to sub $1 million unlike Swiggy which is expected to be burning about $2-3 million per month.
Presently, restaurants and third-party logistics players deliver 80% of Zomato's orders which is likely to change post this acquisition.