Doodhwala Will Use The Funds To Expand Its Services, To Fund Talent Acquisition
The micro delivery startup, Doodhwala, has raised $2.2 Mn in a round of Seed funding from VC firm Omnivore Partners.The company plans to use the funds towards expanding it’s services into new markets, to fund talent acquisition and upgrade its technology. Reihem Roy, Principal at Omnivore will be joining the board of Doodhwala, as per the terms of the deal.
Commenting on the investment, Jinesh Shah, Founding Partner, Omnivore said, “The lean operating model and the direct sourcing relationships that have been built, made this company stand out amongst competitors.” Earlier in 2017, the company raised an undisclosed amount in another Pre Series A funding from Thomas Varkey, a Partner at US-based Stonehill Capital.
Doodhwala: Digitising Milk Delivery
Doodhwala, founded in 2015 by Aakash Agarwal and Ebrahim Akbari, is a subscription-based hyperlocal delivery startup which offers users a wide selection of grocery items, including fresh dairy milk, meat, vegetables, fruits and shelf stable products.
The orders are delivered to the user’s doorstep before 7 am every day. The startup is currently operational in Bengaluru and Pune and claims to fulfill over 400K deliveries in a month.In a statement, the company claims that by lowering its delivery cost to INR 3, it is in a better position than its competitors. It is also maintaining a steady month-on-month growth rate and a customer retention rate of 85%.
Furthermore, the team at Doodhwala expects to scale easily due to its “capital effective model, paired with the high demand for milk, and a need for regulated milk supply.” In the micro delivery of fresh and dairy products, Doodhwala competes with the likes of Milkbasket, DailyNinja, Town Essentials and RainCan.
Gurugram-based Milkbasket recently raised $3 Mn funding in a Pre-Series A round led by Unilever Ventures. In June 2017, Noida-based daily-needs micro delivery startup MrNeeds raised $500K in Pre-Series A funding from a clutch of undisclosed investors.
Prior to that, subscription-based micro delivery startup, Supr Daily secured about $1.5 Mn (INR 10 Cr) from Y Combinator Partners Paul Buchheit and Jared Friedman.
As per a report by RedSeer Consulting, the Indian online grocery market stood at $1 Bn in 2017. Furthermore, Morgan Stanley expects the online food and grocery segment to contribute $15 Bn or 12.5% of overall online retail sales by 2020, expanding at a compounded annual growth rate of 141%.
In the growing online dependence, with the latest funding from Omnivore, the growth of online grocery delivery startup Doodhwala is something to keep an eye on.