Online food and grocery marketplace, Jumbotail today said that it has raised $8.5 Mn in the latest round of funding to enhance the overall customer experience. The series A round of financing is led by the venture capital firm Kalaari Capital along with Nexus Venture Partners, who had previously invested $2mn in the company.
Commenting on the fund release, Bala Srinivasa, Partner at Kalaari Capital said, “98% of India’s food and grocery consumption is via Kirana stores. Jumbotail brings tech-centric innovation to address massive inefficiencies in terms of product discovery, distribution costs, stock outs, and pricing. We are excited by their ability to eliminate information asymmetry, aggregate previously unavailable demand and supply data, and significantly improve economic outcomes for manufacturers, brands, financial institutions and Kirana owners.”
Founded by in Nov 2015 by Stanford alumni S. Karthik Venkateswaran and Ashish Jhina, Jumbotail is an online wholesale marketplace for food and grocery. Jumbotail serves wholesale customers such as Kirana stores and Horeca businesses in Bengaluru and offers storefront delivery and payments collection for its sellers.
The startup offers a wide selection of products including staples, spices, dry fruits, packaged foods, and FMCG products. Sellers (traders, manufacturers and brands) have an option to list their food, grocery and FMCG products on its marketplace.The marketplace is accessible to customers through a mobile app available in 4 languages – Kannada, Malayalam, Hindi, and English. Apart from this, the startup provides working capital credit from third-party credit providers to sellers.
The marketplace is accessible to customers through a mobile app available in 4 languages – Kannada, Malayalam, Hindi, and English. Apart from this, the startup provides working capital credit from third-party credit providers to sellers.
Karthik Venkateswaran, co-founder & CEO, Jumbotail said, “While this is a multi-billion-dollar market opportunity, it requires us to solve challenging problems that are so unique to India that copycat models will not work. We are putting our customers first and building technologies and supply chains that will work for the next billion Indians in distributed, chaotic and unstructured environment.”
Jumbotail aims to organise the food and grocery ecosystem using technology, data science, and design. Furthermore, the company plans to utilise raised capital for building technologies and enhance operational capabilities.