Food logistics start-up Grab raises $1 million

Funds to support its growth, expansion in Pune

Grab.in a food-logistics firm has raised $1 million (Rs 6.36 crore) from Oliphans Capital and independent investor Haresh Chawla.

The start-up will invest the funds to expand in new markets like Pune and others in the near future. The company plans on deploying 800 riders in Pune enabling it to deliver approximately 7000 orders daily across 700 outlets.

Grab, was founded by Jignesh Patel, Nishant Vora and Pratish Sanghvi in 2012.

At present Grab works with over 350 restaurants in Mumbai and have now launched its services in Pune.

Last financial year, it delivered orders worth Rs 35 crore in Mumbai. Its clients include Mainland China, Subway, Smokin Joes, Punjab Grill, Sbarro, Cocoberry, Pesca Fresh, Maroosh, Birdys, Theobroma, Busago, Cafe Mangii, Torrp it Up, Zaafran, and many more.

Home delivery orders are a significant portion of a restaurants turnover. However, the last mile delivery is a challenge for most restaurants.

"Grab uses technology to ensure the operational execution is seamless. While Grab reduces a restaurant's delivery costs by converting it from fixed to a variable cost, it also allows it to expand its reach to a larger customer base," said Pratish Sanghvi.

Grab has recently tapped into the tiffin delivery segment predominantly run by Mumbai's famous dabbawallas. A deeper penetration into the city with the option of delivering tiffins even in the night, has allowed Grab to bridge the gap.

Grab, has a team of 500 riders on its rolls in Mumbai, ensure that the food is delivered in 40 minutes from the time a customer places an order at the restaurant.

Grab's team of riders are connected and trackable in real time with Grab's mobile app, similar to the ones used by cab aggregators. Restaurants using Grab's services are able to track and share precise delivery time with the customer.