B2B marketplace Jumbotail has raised ₹75 crore ($9 million) from Alteria Capital and Innoven Capital in a venture debt funding round.
Jumbotail plans to invest this fresh funding in building deep sourcing capabilities and AI-driven technologies to drive higher customer wallet share, grow its net revenues and achieve operational profitability in the next 12 months.
The company is targeting to expand its current retailer base of 250,000+ retailers across 50+ cities to about 400,000 retailers, and reach over 80 per cent of penetration of the addressable market in the next 12 months.
Ashish Jhina, Co-founder and COO Jumbotail said, “Jumbotail’s pan-India B2B ecommerce platform is the fastest, most effective and capital efficient way for brands to access 250,000+ small and medium Kirana stores across 50+ cities and 100+ next generation J24 convenience stores that serve over 100 million urban middle class consumers. We will strengthen our leadership position by going deeper into our existing markets and expect to hit full operational profitability across our entire network in the next 12 months. We are thrilled to see world class venture debt firm Alteria Capital leading this round syndicate. We welcome on board Innoven on our mission to transform India’s food and grocery retail ecosystem.”
Jumbotail offers a suite of Go-To-Market services for brands looking to reach the kirana market to shape both retailer demand and consumer demand. Currently, Jumbotail has nearly 60 per cent of penetration of the addressable market of kirana stores in the 50+ cities. The company said that all of its sales are generated by unassisted digital orders placed by kirana stores on the Jumbotail app.
Commenting on the deal, Ankit Agrawal, Managing Partner, Alteria Capital said “We have witnessed Jumbotail execute sustainable growth at scale, with a strong focus on profitability and capital efficiency. We are more than confident that Jumbotail will emerge as the clear market leader in the $500B kirana b2b food and grocery market. We are thrilled to double down our support to Jumbotail’s mission to transform the food and grocery retail value chain in India.”
Adding to this, Sameer Mansukhani, Partner from Innoven Capital said “Jumbotail is leading India’s mass transformation of kirana retail ecosystem by providing full stack solutions to modernize kirana stores from both the supply and demand side. We are super happy to partner with the team at Jumbotail and be a part of their journey to emerge as a clear market leader in kirana retail transformation.”
In addition to being an online B2B marketplace, Jumbotail also offers kirana stores tech driven warehousing, last-mile delivery supply chain network, its fintech platform for payment, credit solutions and financial services.