Delhi-NCR-based meat and seafood seller Good To Go has acquired Nabventures-backed meat delivery startup TenderCuts in what could be a possible distress sale.
TenderCuts equity investors Nabventures and Paragon Partners as well as its debt investor Stride Ventures were looking to sell the company to a suitable suitor for quite some time as it wasn’t able to raise fresh funding, a person aware of the development told VCCircle.
However, Good To Go didn’t disclose the financial details of the transaction.
Stride Ventures, which recently led the slump sale for one of its portfolio startups, GoMechanic, also led the TenderCuts deal, the person said on anonymity.
The person added that both the bigger players in the space – Licious and Fresh To Home – were approached earlier, but the deal couldn’t proceed due to the startup’s unhealthy unit economics.
Good To Go, which has been operating out of North India, will mark its foray into the South Indian market and will continue to pit against the likes of Licious, Fresh To Home, and Zappfresh, with the acquisition.
Meanwhile, the current deal will also see Good To Go acquiring Happy Chops, which was launched by TenderCuts earlier this year. Happy Chops helps offline vendors sell
meat and fish online on its platform. It provides technology and logistics support to vendor partners.
Happy Chops has onboarded more than 300 local stores in Chennai to date. Good To Go will bring this model to Delhi-NCR as well through this acquisition.
This strategic acquisition will bring together Good To Go's offline expertise and best practices in North India with TenderCuts' omnichannel market presence coupled with strong brand recall in Southern India, the company said in a statement.
Currently, GoodToGo has 11 stores in Delhi-NCR and TenderCuts is operating 16 stores in Chennai. This acquisition will help in unlocking synergies that will make GoodToGo an Rs 300 crore annualised brand in the next 12-18 months, the company said.
