Sequoia and Nexus invest $3 million in TinyOwl

Food ordering mobile app TinyOwl has raised $3 million in a first round of funding from Sequoia Capital and Nexus Venture Partners. TinyOwl Technology, the Mumbai-based startup that has developed the app, will use the capital raised to deepen its presence in Mumbai, its home market, and expand to other metros.

Founded in March this year by a group of five IIT Bombay alumni including Harshvardhan Mandad and Gaurav Choudhary, TinyOwl claims a network of over 3,500 restaurants in Mumbai at present. Available on Android and iOs, the app enables consumers to order food through their mobile phones and have it delivered at their doorstep.

Payments can either be made via the app using credit cards or through cash-ondelivery. “We’ve grown to more than 3,500 restaurants in Mumbai and are servicing thousands of customers. We aim to offer the best personalised experience to our users and are setting up a data science and research lab for the purpose,” founder and CEO Mandad said.

The over online food ordering segment has seen a fair bit of activity this year. Delhi-based Zomato recently raised a $60 million funding round from Naukri promoter Info Edge, Vy Capital and Sequoia at a reported premoney valuation of $600 million. There’s also been some early consolidation in the segment. Last month, Rocket Internetbacked Foodpanda acquired Pune-based TastyKhana for an undisclosed amount.

Like TinyOwl, both Zomato and Foodpanda drive a significant portion of their traffic through their respective mobile apps. “We believe that the food ordering experience will make a quantum leap in their quest in the era of smartphones,” Sequoia principal Gautam Mago said in the context of the TinyOwl investment.