Indore-based B2B supply chain company for retailers ShopKirana, has raised $38 million in series-C funding round. The investment came in from existing investors Info Edge, Incubate Fund, Akatsuki AET Fund, NPTK Emerging Asia Fund and Better Capital.
The fresh funds will help ShopKirana expand to major, major tier-II cities in India. The new funds will be used to strengthen its presence in major Tier 2 cities. Before this round, ShopKirana had raised $10 million in 2019.
Founded in 2015 by Tanutejas Saraswat, Deepak Dhanotiya, and Sumit Ghorawat, ShopKirana provides a platform for connecting individual retailers directly with suppliers. According to the company, it aims to connect farmers with retailers through its platform.
Sumit Ghorawat, cofounder, ShopKirana, said, āShopKirana platform can place an international brand in local Kirana stores and has the power to take a local brand to India scale.ā
āWe are building the biggest and the quickest go-to-market channel for FMCG brands to reach rising middle-class Indian consumers via Kirana stores. ShopKirana platform can place an international brand in local Kirana stores and has the power to take a local brand to India scale,ā added Ghorawat.
The startup aims to connect nine million individual retailers
ShopKiranaās vision is to directly connect nine million individual retailers with suppliers and distributors by removing mediators and traders. It wants to help small Indian retailers improve their profits, product range, product availability, credits, inventory management, and access to more customers.
āShopKirana empowers small retailers by servicing them better, faster, cheaper, and enabling them to compete against organized retail and e-commerce. The supply chain efficiencies they have brought about using technology and data analytics is industry-leading,ā said Kitty Agarwal, head- of corporate development and VC at Info Edge.
Globally, India is among the top 10 retail markets. In 2013, the Indian retail sector was estimated at US$520 billion and was among the largest employers in the country.
By 2019, the Indian retail sector grew at a CAGR of 13 percent to reach $950 billion. Indian traditional retail is still key and is the biggest in the pie of retail industry, wholesale being the biggest opportunity in the industry.
Shopkirana aims to put a dent into the Indian wholesale industry by becoming the only wholesale marketplace platform. According to a 2018 IBEF report, the Indian retail market will reach $1.1 trillion by 2020.
