B2B ecommerce platform ShopKirana has secured $10 million in a Series B round of funding from Info Edge, Incubate Fund, Akatsuki AET Fund, NPTK Emerging Asia Fund and Better Capital, per a company announcement.
Of the total funding, about $6.6 million (about Rs 47 crore) has been contributed by Info Edge in exchange for 2,333 compulsorily convertible preference shares of Shopkirana. The aggregate shareholding of Info Edge in the Indore-based startup now stands at 25.36 per cent on a fully converted and diluted basis, it said in a BSE filing.
Founded in 2015 by Tanutejas Saraswat, Sumit Ghorawat, and Deepak Dhanotiya, Shopkirana will use the funding proceeds to expand its presence across major tier-II cities in India.
It is currently engaged in the business of developing a B2B e-commerce platform for ordering, delivery, payments and related products/services among various stakeholders in grocery and FMCG supply chain.
“As part of company’s strategic investments, the acquisition would help the company to consolidate its presence into the aforesaid line of business within the internet services industry,” Info Edge said.
ShopKirana had raised Rs 14 crore in Series A funding led by Info Edge and participated by Akatsuki, Incubate Fund and Better Capital in December last year. Two years prior, the startup had raised about Rs 3 crore led by Japan’s Incubate Fund, with participation from angel investors.
Sumit Ghorawat, co-founder, ShopKirana, said, “We are building the biggest and the quickest go-to-market channel for FMCG brands to reach to rising middle class Indian consumers via kirana stores. ShopKirana platform has the ability to place an international brand in local kirana stores and has the power to take a local brand to India scale.”
ShopKirana claims to be present in 1 lakh stores across 30 cities, having enabled $2 billion in sales.
The company achieved turnover of Rs 24.49 crore in 2018-19 against Rs 8.92 crore in 2017-18.
“ShopKirana empowers small retailers by servicing them better, faster, cheaper, and enabling them to compete against organized retail and ecommerce. The supply chain efficiencies they have brought about using technology and data analytics is industry leading,” said Kitty Agarwal, head- corporate development/VC at Info Edge.
In 2013, the Indian retail sector was estimated at $520 billion and was among the largest employers in the country. This year, the Indian retail sector is likely to grow at a CAGR of 13% to reach a size of $950 billion.