Convenience store network Frendy on Monday (September 27) said it has raised INR 16 Cr ($2 Mn) in a bridge round.
The funding round saw participation from existing investor Desai Ventures and new investors like Auxano Capital, AT Capital Singapore, Metara Ventures, Priya Joseph, Rohan Jain and Rishabh Jain of The Wellness Co., and Apurva Salarpuria family office.
In a statement, the startup said it may extend the round up to INR 24 Cr (about $3 Mn) via a follow-on rights issue.
The startup plans to use the fresh funds to expand its technology stack, stores, and private-label product portfolio.
Founded in 2019 by Sameer Gandotra and Gowrav Vishwakarma, Ahmedabad-based Frendy is an omnichannel convenience store network for India’s small towns that leverages existing micro-stores such as family-run kirana stores and new home-based stores set up by housewives as a last mile distribution point. Through its app, the startup sells household items with the help of its women community leaders.
The startup claims to have expanded to over 40 Tier II-VI towns in Gujarat, serving 50,000 customers with over 4,500 products.
Frendy, which sells beauty, cleaning, grocery, kitchen products, among others, under its private-label portfolio, said its revenue stood doubled to INR 82 Cr in FY23 from INR 40 Cr in FY22.
Commenting on the startup’s growth plans, Gandotra said, “In our second phase we are going asset & operations light with our Franchised Marts doubling up as a warehouse for our existing micro-stores and in parallel have scaled down our central warehouse.”
“Our goal for the coming 12 months is to have 40 operational Marts and further build out our private label offering. We have now perfected our business model and will continue to grow with right unit economics and scale out the model to the rest of Gujarat & then into other states,” he added.
In May last year, Frendy raised $3 Mn in an extended Series A funding round from the Desai Family office, Let’s Venture Angel Fund, Centera Fund UK and more.
In the retail tech market, the startup competes with the likes of New Shop, 1K Kirana, Super K, Citymall, Dealshare, among others.
As per a report by Statista, India is the world’s fastest-growing grocery market. In 2020, the size of the grocery market in India amounted to $573 Bn and is likely to increase to $852 Bn in 2025.
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