Food ordering platform, based out of Bengaluru – TinyOwl has raised Rs 50 crore from existing investors. This round was led by Sequoia Capital and Matrix Partners. This funding comes in at a much needed time when the startup was planning to restructure and cut costs.
“Layoffs are a part of the restructuring strategy. There are some areas where as a company we need to curtail operational inefficiencies and on the other hand increase efficiency, productivity in focused departments, providing the best innovative offerings to our customers. We are looking at developing focused departments to help service our customer better,”
This funding will provide TinyOwl the much needed time to emphasize on developing a sustainable business. Harshvardhan Mandad, CEO of TinyOwl, said that the company is in the middle of a restructuring process, which will help them optimize their resources and cash in a more effective manner. He continued to state that :
“In the last few months, we have fully outsourced our last-mile delivery to partners including Roadrunnr, Opino, Shadowfax. This move helps us focus sharper on our core technology and processes as well as significantly cut costs of delivery….Our costs have come down by 43 per cent with this realignment……Going ahead, we are looking to fully move our order processing to a merchant app and keep our call center only for escalations and select restaurants,”
TinyOwl was founded in 2014 by Harshvardhan Mandad, Shikhar Paliwal, Gaurav Choudhary, Saurabh Goyal and Tanuj Khandelwal, all of whom are IIT Bombay alumni. In Feburary this year, they managed to raise Rs 100 crore led by Matrix Partners India, with participation from Sequoia Capital and Nexus Venture Partners.