DailyNinja scores new round of funding

DailyNinja Delivery Services’ new round of funding involved drafting of a deed of adherence (DOA) to help the company, which has many angel investors, raise capital faster in the future, said a lawyer involved in the deal.

“Even though we were acting for Matrix Partners India, we suggested and helped draft documents to implement the DOA construct … We’ve found in other early to mid-stage companies that a lot of individual angel investors on the cap table means that when raising a round of funding, there are a lot of logistics issues for the company (such as running after so many folks for review of documents, signature pages, approvals, etc.),” said Prasad Subramanyan, a principal associate at Rajaram Legal, the adviser to investor Matrix Partners India.

“Accordingly, we’ve started bringing stakeholders on board with the DOA concept to fully protect the angel investors’ rights without involving them in the larger transaction document. The concept was accepted by all parties in this round of financing and now going forward, the company will be able to easily raise funds, and will only need to seek consent from the angels if they are making any changes that adversely affect them(which is rarely the case). This will help them engage in faster fund raises in the future.”

Existing investors Sequoia Capital and Saama Capital also participated in the current round of capital raising.

“Considering three equally big funds were involved, there was a complex interplay of rights [between] the set of investors as there was no lead investor among the three,” said Sambhav Ranka, a partner at IC Universal Legal, the adviser to Daily Ninja.