1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores

1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores

SUMMARY

1K Kirana has secured investment in a Series B funding round at a post-money valuation of $115 Mn

The funds will be used for business expansion and developing tech stack of 1K Kirana

1K Kirana is going to raise another $25-$30 Mn at an increased valuation in the coming months

1K Kirana, which is an online platform for Kirana stores, has raised $25 Mn in a Series B funding round at a post-money valuation of $115 Mn. The round was co-led by Alpha Wave Ventures, Info Edge Ventures and Kae Capital.

Angel investors including Amrit Acharya, Srinath Ramakkrushnan, Rahul Sharma and Vishal Chaudhary from Zetwerk and Kushal Karwa, Rishabh Karwa, Nitin Rana, Amit Bhasin from GoMechanic have participated in the round. 

The funds will be used for developing the supply chain capabilities and tech infrastructure of 1K Kirana. It will be further deployed to expand the startup’s warehouse footprint from the current 2 Lakh sq feet to 6 Lakh sq feet. 

The current investment is the first tranche of the large funding round. 1K Kirana is likely to raise another $25-$30 Mn in the coming months at an increased valuation.

The latest development comes after 1K Kirana secured $7 Mn in a Series A funding round in August last year. The round was led by Info Edge Ventures and Falcon Edge. 

Other investors including Kae Capital, Rajesh Yabaji and Chanakya Hridaya from Blackbuck and Hari TN from Bigbasket participated in the round.  

Founded in 2018 by Kumar Sangeetesh, Sachin Sharma and Abhishek Halder, 1K Kirana follows a franchise model where it connects Tier-2 consumers with its franchise partners, basically it’s partnered kirana stores. The startup follows the approach of D Mart where customers can come, pick products and do checkout via its app. 

1K Kirana claims that 70% of its franchise partners are existing kirana stores while 30% are new kirana stores that are coming into this space.

Kumar Sangeetesh said, “1K Kirana is a supply chain end-to-end. The startup sources, distributes and then ensures that consumers come to the stores to buy products. Our app is used to pull consumers to the stores rather than delivering products at their doorstep.”

1K Kirana essentially focuses on consumers living in Tier-2 cities of India. It claims to have served over 1 Mn customers in various districts of Delhi, Haryana, Rajasthan and Uttar Pradesh. It aims to serve more than 10 Mn customers across 100 districts through 5,000 franchise stores in the next 12 months. 

According to 1K Kirana, it had an annual recurring rate (ARR) of INR 300 Cr in the last fiscal year (2021). It said it is currently clocking INR 30 Cr monthly recurring rate (MRR) and aiming to achieve INR 1000 Cr ARR by the end of this fiscal year (2022). 

It faces competition from Dukaan, Kirana King, Khatabook, and ShopKirana among others. 

Step up your startup journey with BHASKAR! From resources to networking, BHASKAR connects Indian innovators with everything they need to succeed. Join today to access a platform built for innovation, growth, and community.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores-Inc42 Media
1K Kirana Raises $25 Mn To Connect Consumers With Grocery Stores-Inc42 Media
You’re in Good company