Kalaari, Nexus back Indian online grocery marketplace

The company provides a platform for operators of local neighborhood shops, called kiranas, to list their inventory, including packaged foods, spices, dried fruits and consumer goods. It will use the new capital to improve its technology and operational capabilities, according to a release.

Sellers can access full stack services through Jumbotail’s marketplace, such as storefront delivery and payment collection. The company also helps customers source credit for their working capital requirements through its partnerships with third-party credit providers. It claims to use its transactional data and proprietary software to assess customers’ creditworthiness.

“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,” said Bala Srinivasa, a partner at Kalaari. “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 and kirana owners.”

Jumbotail’s model resembles that of Grofers and BigBasket, both of which have raised multiple rounds of VC funding. However, the companies have de-emphasized the hyperlocal delivery model in the past year, phasing in an inventory-led service that they hope will enable greater efficiency in delivery while encouraging customers to place larger orders.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Technology
• Early-stage
• India
• TMT
• Kalaari Capital
• Nexus India Capital Advisors
• Venture