Singapore-based delivery platform Deliver.sg has bought Indian mobility lifestyle platform BusyBee for $371K to strengthen its footprint in the Asian and Middle Eastern markets.
BusyBee, known for its transformation from a courier service to a mobility lifestyle app, will complement Deliver.sg’s DAAS (Delivery As A Service) model, according to a statement.
“With a strong network of over 1,800 delivery riders across 317 locations in South India, BusyBee is poised for significant growth under Deliver.sg’s umbrella,” it added.
Post the acquisition, Deliver.sg’s advanced technology and expertise, will enhance BusyBee’s operational efficiency and profitability, while it plans to expand its reach to 1,000 locations by 2025.
“As we integrate BusyBee’s extensive network with the growth of HighRices and HomeRadius, our goal transcends expanding our geographical footprint. We’re fostering innovation, entrepreneurship, and community building…This initiative marks the inception of a long and promising journey towards a future that’s more collaborative, connected, convenient, and community-focused,” Krishnamani Kannan, cofounder and CEO of Deliver.sg, said.
In 2020, Krishnamani Kannan and Naresh Kumar Rajendran launched Deliver.sg. The delivery platform stands out by offering island-wide (long-distance) delivery, in contrast to competitors limited to a 3 km radius, addressing a significant market need.
On the other hand, BusyBee was founded by Arun Kumar in 2017. It began as an on-demand courier service and has since evolved into a mobility lifestyle platform. It is currently operational in 317 locations across five Southern Indian states with over 1800 delivery riders.
Meanwhile, Deliver.sg has invested $185K in “HighRices”, a Tamil Nadu-based startup, through a share swap and equity funding model. Simultaneously, it has committed $185K to HomeRadius, an app streamlining the process of hiring home service professionals.
The number of M&As in the Indian startup ecosystem almost halved to 123 in 2023 from 240 deals in 2022, according to Inc42. 2023’s biggest deal was OLX’s Sobek Auto being acquired by CarTrade for an estimated $67 Mn.
Moreover, the top 10 deals averaged around $26.2 Mn in size, a significant drop from the $237.5 Mn average deal size among the top 10 deals in 2022. Due to the lacklustre funding performance observed in 2023, the Indian startup ecosystem may likely experience another year of sluggish M&A activity in 2024.
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