New Delhi-based NGA Technologies Pvt Ltd, which operates autorickshaw-hailing app AUTOnCAB, has acquired hyperlocal grocery delivery startup BigZop for an undisclosed amount.
"We want to help auto rickshaw owners gain maximum utility of their asset," Vinti Doshi, co-founder of AUTOnCAB, said in a press statement. In other words, AUTOnCAB would leverage its autorickshaw network to offer grocery delivery services to customers.
The cash and stock deal also allows AUTOnCAB to launch new products in the areas of hyperlocal logistics and urban transportation, as per a press statement.
"We have acquired BigZop to strengthen our core team. By leveraging their expertise in product development and operations we will be able to grow at ten times the pace," the statement said.
AUTOnCAB, which is currently operational in Gurgaon, Noida and Chandigarh, is an Android/iOS app which facilitates on-demand hailing of autorickshaws. The app also calculates distance/fare for a ride. It has the ability to monitor all drivers and rides in real time. The startup had showcased at Techcircle E-commerce Forum 2015 in February. It expects to facilitate one million rides by expanding in 40 cities by the current year-end.
BigZop was started by IIT Kharapur alumnus Aaditya Goyal along with his classmates Mayank Bana and Subhajit Ray in June. The firm offers over 3,500 items across categories ranging from fruits & vegetables, grocery, beverages, personal care, household and dairy. In August, it raised around Rs 3.9 crore ($600,000) in seed funding.
With this transaction, AUTOnCAB will have dual strengths in autorickshaw hailing and grocery delivery, much like its rivals Ola and Jugnoo. Jugnoo (which already offered grocery delivery and autorickshaw aggregation services) recently forayed into cab hailing through the BookMyCab buy. Ola, the country's largest cab aggregator, recently ventured into the home delivery of meals and groceries segment by organically launching a standalone app named Ola Store.
The hyperlocal grocery and food ordering segment has seen the emergence of a bunch of startups. Indeed, firms such as Grofers, Peppertap, LocalBanya, Myonsto and iOrderFresh have also raised money. Most of these are aggregators who essentially provide an online platform to order from local vendors.