An online wholesale market for grocery and food items, Jumbotel said it raised an additional $ 14.2 million on Friday as the Bengaluru-based startup pursues the opportunity to digitize neighborhood shops in the world’s second-largest Internet market .
The five-year-old startup said its new installment of its Series B financing round was led by VII Ventures, with participation from Nutresa, Veronort, Jumbofund, Killent Investment Trust, Peter Crosby Trust, Nexus Security Partners And Discovery Ventures
The startup told ClearTips that the new installment concluded its Series B round, which it kickstarted in 2019 with a $ 12.7 million installment. The series rose to about $ 44 million in the B round (including Friday’s installment), and has accumulated approximately $ 54 million in equity investment to date, the startup told the publication.
Jumbotel said that it has more than 30,000 neighborhood stores (popularly known as Kirans in India) in the country. In addition to its business-to-business marketplace, the startup also provides working capital to neighborhood shops through partnerships with financial institutions.
The startup, which has built its own supply chain network to enable last-mile delivery, also supplies these stores with point-of-sale devices so that they can easily access a much wider selection of catalogs And send them to the new list within two days. It integrates these stores with hyperlocal delivery startups such as Dunzo and Swiggy to help mom and pop shops further expand their customer base.
Jumbotel co-founder Ashish Jhina said he believes the startup has reached a turning point in its growth and is now ready for its next chapter, which includes hiring top talent and expanding into more areas in the country Doing is involved, especially in many cities of South India.
“We are seeing tremendous interest from investors around the world, who are ready for the scalable and operational profitable business model built on our industry’s best technology and customer NPS,” said Jhina. Commerce companies eBay and Flipkart.
At a recent virtual conference, Jhina said that the coronavirus epidemic, which led to New Delhi ordering a nationwide lockdown and banning e-commerce firms, has described how important neighborhood stores are in people’s lives . And for all the diseases that viruses have come into the world, it helped accelerate the adoption of technology among these stores.
Today many food brands whose products the neighborhood stores sell are not standardized, which raises a question about their quality. To fill this gap, Jumbotel ran its own private label portfolio and Jhina said the startup would deploy part of the new fund to broaden the list. Having a private label allows Jumbotel to ensure its retail partners can supply items throughout the year – and of course, it also helps startups, which have been operating operationally for about three quarters Has been profitable, improving its margins.
There are over 30 million neighborhood stores in India located in thousands of cities and towns of the country. These small businesses have been around and left for decades – and even thriving – despite the e-commerce giants how people shop to pour billions of dollars into India. In recent years, startups in India – and scores of veterans – have begun to find ways to work with these neighborhood stores.
One of them is India’s largest retail chain Reliance Retail, Which serves more than 3.5 million customers every week through nearly 10,000 physical stores in more than 6,500 cities and towns across the country. In late 2019, it entered the e-commerce space with sister subsidiary telecom giant Jio Platforms along with JioMart. By the middle of last year, JioMart had expanded to more than 200 Indian cities and towns – though currently its reach within those cities and customer service leaves much to be desired.
Reliance Retail also maintains a partnership with Facebook for WhatsApp integration. Facebook, which invested $ 5.7 billion in Jio Platforms last year, has said it will work with Reliance to diversify the country’s mom and pop stores, as well as other small and medium-sized businesses to digitize. Will detect
For JioMart, Reliance Retail is working with neighborhood stores, giving them a digital point-of-sale machine to make it easier to accept money electronically. It is also allowing these stores to purchase their inventory from Reliance Retail, and then use their physical presence as distribution points. Currently, the platform is largely focused on grocery delivery. In a recent report to customers, Goldman Sachs analysts speculated that Reliance could become the largest player in online grocery within three years.