Bengaluru-based B2B supply chain startup AnKa SumMor has raised INR 11.6 Cr in Pre-Series A funding round led by Inflection Point Ventures. Pratul Shroff from Waao Partners and Brijesh Agrawal, cofounder and director, IndiaMART, also participated in the round.
Founded in 2018 by Ashok George and Rajiv Joshi, AnKa SumMor provides ‘challenger’ brands access to conventional FMCG distribution outlets including trade outlets, supermarkets and specialty stores at lower costs.
AnKa SumMor’s customers include McVities, Wai Wai, Yoga Bar, Yellow Diamond, Bauli, Tru Earth, Om Bhakti, and Paper Boat among others.
The ‘SumMor model’ consolidates and aggregates CFAs (Carry and Forwarding Agents), super stockists and multi-channel distributors under one platform. The startup gives brands reach and presence while also allowing them to monitor outlet level sales data in real time. It earns revenues from the margin on retail sales.
“The Indian retail industry is very fragmented,” said Ashok George, CEO and cofounder of AnKa SumMor, in an interview with Inc42. “Distributors also act as financiers and infrastructure providers. Attrition is very high, and the whole process is very inefficient. With AnKa SumMor, we are trying to consolidate the distribution network,” he added.
S&D enablement players will play a pivotal role in fuelling the burgeoning Indian retail market which is projected to touch $260 Bn in the next 4-5 years, the startup’s founder added.
The startup’s solutions cover 8,000 retail stores across Hyderabad, Chennai and Bengaluru and will end the financial year with an annual recurring revenue of INR 60 Cr, it claimed. The startup also plans to operationally break even in FY2023 and deliver INR 500 Cr in annual revenue by FY2025.
It will use the funds raised to enhance the product offering, scale operations in Chennai and Hyderabad, and expand operations to Bengaluru.
According to George, the company will also branch into leveraging AI and machine learning technologies to create recommendation engines for both brands and retailers. But until then, scaling up and consolidating distributor networks will be the its priority.
According to an IBEF report, India’s retail market was estimated to be worth $883 Bn in 2020, with grocery retail making up $608 Bn of that figure. The market is expected to reach $1.3 Tn by 2024.
During a 2015 presentation, Boston Consulting Group’s Senior Partner and Director Abheek Singhi spoke about how the kirana-store model works well in a complex market in India. If Reliance Retail Ventures introduction of 7-Eleven convenience stores in India is any indication, little has changed since then.