In India, online grocery market has almost marked $1 billion worth sales in 2017 and is expected to grow much bigger this year, as per Redseer Consulting report. In this market, a Bengaluru-based fresh grocery delivery startup Doodhwala has raised $2.2 million seed funding from venture capitalist Omnivore in exchange for a minority stake.
In 2015, the fresh grocery delivery startup Doodhwala was founded by Aakash Agarwal and Ebrahim Akbari. The startup offers dairy products, personal care products, bakery, etc through its online platform. The startup is currently operational in Pune and Bengaluru. The startup plans to use the raised funding to expand in new markets and to upgrade its technology.
Reihem Roy, Principal at Omnivore will also join the board of the startup as per the part of the deal.
Akbari said, "Our unit economics are exceptionally strong. By lowering our delivery cost to Rs 3, Doodhwala is uniquely positioned in a market where other players are struggling. We have done a great job of maintaining a steady month-on-month growth rate while scoring an 85 per cent plus customer retention.
The startup claims to have over 4 lakh deliveries every month and it delivers at before 7 am in the morning so that customers can get the fresh dairy products at home.
Last year, the company also raised an undisclosed amount of funding in Pre-series A from Thomas Varkey, a partner at Stonehill Capital, USA.
In this market, last month Gurugram based another grocery delivery startup Milkbasket has raised funding of $3 million from Unilever ventures.