Indian online grocery wholesaler Jumbotail raises $14.2m led by VII Ventures

Photo: Pixabay

Jumbotail, an online wholesale marketplace for food and grocery products, has raised $14.2 million in its latest round of funding.

This round comes in quick succession after a $11 million Series B2 round raised in October 2020, thus completing its $25 million fund raise. This round was led by VII Ventures, with participation from Nutresa, Veronorte, Jumbofund, Klinkert Investment Trust, Peter Crosby Trust, Nexus Venture Partners, Discovery Ventures, and a group of high net-worth individuals and industry leaders.

Jumbotail will use the funds to hire top talent, scale its core business-to-business (B2B) marketplace to new geographies across India, expand its network of J24 stores, grow its private label product portfolio, and to extend its Go-To-Market services to more fast-moving consumer goods brands seeking entry into kirana stores and standalone supermarkets across the country.

“Jumbotail is at an inflection point in its growth trajectory. We are seeing tremendous interest from investors across the globe who are drawn to our highly scalable and operationally profitable business model, built on the industry’s best technology and customer NPS. We will use this capital to scale the business to new regions, to double down on our J24 store network and to launch a suite of services to help FMCG brands go to market exponentially faster and at the lowest cost. We are looking to bring in more top talent across the entire company to power this explosive growth,” said Ashish Jhina, co-founder, Jumbotail.

The Bengaluru-based startup sources and sells products such as staples, pulses and other fast moving consumer goods to small mom-and-pop stores, kiranas, and supermarkets.

It currently serves more than 30,000 small stores its full stack B2B e-commerce model, which includes warehouses, a last-mile delivery supply chain network, and a fintech platform for payment and credit solutions to store owners.

Chadi Hajjar, Managing Director of VII Ventures, commented, “We are very excited to make this investment in Jumbotail, which is one of India’s most dynamic and fast-growing businesses. We believe that Ashish and Karthik share our vision of disrupting the status quo, and we admire their fighting spirit and determination to digitalise the grocery supply chain and retail landscape in India. Jumbotail has all the ingredients for success, and we are keen to help them move forward in this next step of their journey.”

Jumbotail was founded in 2015 by S. Karthik Venkateswaran and Ashish Jhina.

There are about 12 million kirana stores in India, controlling more than 95% of the $350 billion food and grocery market. Jumbotail is one of several startups in the business-to-business (B2B) wholesale supply space focused on kirana stores and other mom-and-pop store formats. Others such as ShopKirana, BigBasket, and Udaan are also creating systems for easy access to wholesale procurement for small stores.

Behemoths such as Reliance Jio, Amazon and Walmart are also competing with tech startups to supply wholesale inventory to kirana stores.

The article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.