B2B grocery startup Shopkirana has raised $38 million from Info Edge, Oman India joint investment fund, Sixth Sense Ventures and other investors. The round also saw participation from Trifecta, Incubate Fund, Akatsuki, Ajanta LLP, Gunosy Capital and others. The round valued the startup at $150 Mn.
Founded in 2015 in Indore by Deepak Dhanotiya, Sumit Ghorawat, and Tanutejas Saraswat, ShopKirana works directly with brands and gives them a boost on distribution with market intelligence. It currently works with 50,000 Kirana stores in eight cities across four states —Madhya Pradesh, Uttar Pradesh, Rajasthan and Gujarat.
The company claims to be the first mover on selling groceries directly to retailers from brands. The sector is now rife with competition from big, well-funded companies such as Udaan, Jiomart, Flipkart, Amazon and Jumbotail.
Right from its inception, the company has focused on selling only packaged FMCG goods such as detergents, hair oil, shampoo, cosmetics and biscuits, not getting into selling highly perishable goods like fresh fruits, vegetables and staples. Dabur, ITC, HUL, P&G are the partners.
Sumit Ghorawat, Co-founder of ShopKirana, said, “With the right product-market fit and considering the heavy adoption from kirana stores, legacy consumer goods brands and direct-to-consumer or D2C brands, we are super excited to take the business to a national scale.”
“The market is an ocean. There is no way one player can take the entire market. It is a $500 billion market. We are adding another $55-60 billion to FMCG and grocery. That is the size of pharma. Many players will survive,” he further said.
Its digital platform, Direct, is “highly sticky” for both retailers and brands, and as a result, the company has been able to achieve a line item fill rate of 97.5%. That means for every 100 items the trader has demanded, the company has been able to deliver 97.5. For the rest of the industry, the average fill rate is 75-85%.