Exclusive: Swiggy to acquire micro-delivery startup SuprDaily soon

Milk-tech is hot and attracting the attention of large companies such as BigBasket and Swiggy. While Alibaba-backed e-grocer is in the last leg to acquire Pune-based micro-delivery platform RainCan, Swiggy is in advanced talks to take over SuprDaily.

“Swiggy has proposed an offer consisting of equity and cash to acquire SuprDaily,” said two sources aware of the development. The Mumbai-based company was also engaged in conversation with BigBasket for a buyout, however, the discussion fizzled out as the latter decided to go with RainCan.

“Besides Swiggy, SuprDaily also has term sheets from multiple venture capital firms but it’s likely to go with Swiggy,” added both sources on condition of anonymity. The details of the deal including amount (cash plus equity) and valuation consensus between both parties can't be ascertained.

Flush with the fresh fund, the delivery major has been eyeing to enter micro-delivery space to accelerate scale for about six weeks. Apart from selling milk and grocery, it also plans to deliver medicine, mentioned one of the sources.

Two-three weeks ago, Swiggy also explored acquisitions discussion with Sequoia Capital-backed DailyNinja. “Talks with DailyNinja failed to fructify as the company wanted to explore the space independently,” added aforementioned sources.

So far, SuprDaily had raked in Rs 10 crore from Soma Capital, Great Oaks Ventures, 122 West Ventures including a consortium of Silicon Valley angels including Y Combinator partners – Paul Buchheit, Jared Friedman.

“The deal is expected to materialize in the next two-three weeks,” emphasized both sources. Entrackr has sent emails to Swiggy and SuprDaily and will update the post as responses come in.

As of now, Swiggy has raked in $250 million in total risk capital from Naspers, Meituan-Dianping, Accel India, SAIF Partners, Bessemer, and several others. Recently, it had crossed the 10 million order mark.

After raising a sizeable $100 million Series F round from Naspers and Meituan-Dianping in February this year, the company is currently negotiating a fresh funding round with DST Global, Coatue Management, along with Meituan-Dianping.

Since building a loyal consumer-base has turned out to be difficult, matching unit economics in a pure-play grocery delivery model is tough. On the contrary, micro-delivery platforms inherently have a loyalty factor through milk and other daily essentials requirement.

The loyalty factors can be used to cross-sell many product and services.