Grab a Grub Services Pvt. Ltd, a local delivery company that operates as Grab.in, is on the verge of closing a funding round worth $10 million, according to two people directly involved in the deal. It raised an early-stage round worth $1 million from Oliphans Capital and independent investor Haresh Chawla in April.
The Mumbai-based company was founded in 2012 by Jignesh Patel, Nishant Vora and Pratish Sanghvi.
Sanghvi confirmed that the firm is looking to raise funds, but declined to comment on the size of funding. “We are looking to expand the delivery network to 15 new cities that include Chandigarh, Jaipur and Chennai,” he said.
The company is also improving its technology, investing in marketing initiatives and expanding the merchant network to 1,000 merchants by 2016. Grab.in provides its technology solutions to merchants for tracking orders and deliveries. “We work with over 450 merchants, do 4,500 transactions with a value of Rs.35 crore. Eighty-five per cent is food delivery and the balance is medicines and other goods,” Sanghvi said.
Investment banking firm Merisis Advisors is advising Grab on its fund raising.
The hyperlocal delivery space has been getting a lot of investor attention. In the business-to-consumer (B2C) space, Grofers raised $45 million from Sequoia, Tiger Global and others; Peppertap raised $10 million from Saif and Sequoia.