Scootsy gets $3.6 million from Agnus Capital and Khattar Holdings

Mumbai-based on-demand delivery startup Scootsy has raised $3.6 million (Rs 23 crore) in a bridge round of investment from Bangalore-based Agnus Capital, the family office of the promoters of pharmaceutical firm Strides Group, and Singapore-based investment firm Khattar Holdings, a company statement said.

The startup will use the new capital to strengthen its logistics, technology and delivery platform. It will also use the funds to launch Scootsy Express, a service that will deliver food to corporate offices across the city and Scootsy Pop-Up, a kitchen and distribution platform that will be available to brands across the country.

Horizontal players such as Amazon also have presence in the hyperlocal delivery space with Amazon Now. 

Another startup in this space is Bangalore-based ZN Retail Pvt Ltd, which runs online grocery property ZopNow, which in 2015 raised $10 million (Rs 62 crore) from San Francisco-based Dragoneer Investment Group with participation from existing investors Accel Partners, Qualcomm Ventures and Times Internet.

The hyperlocal delivery segment has seen a number of casualties as investors have turned cautious due to a lack of a sustainable business model in the space.

In March this year, Chennai-based hyperlocal delivery startup Genie Solutions Pvt. Ltd shut its operations after it failed to raise funds.

Over the past year-and-a-half several other startups in the segment, including well-funded ventures like PepperTap and LocalBanya have also shut shop.