Mumbai-based online grocery startup Localbanya has announced that it had raised a funding round led by Shrem Strategies in late 2014. With this, the startup has also expanded its operations in Pune after having a test run. Customers will be able to enjoy the same convenience offered to Mumbai users including same day delivery.
“The launch of our services in Pune coupled with a fresh round of funding, sets us on our way to the next phase of our vision – taking brand Localbanya to as many Indian households as possible. We have gained a lot of experience here in Mumbai and feel this is the right time to expand our operations. If all goes well, we hope to be in 4-5 additional metros very shortly,” says Localbanya Co-founder Rashi Choudhary.
Localbanya had raised funding twice before this round of funding, prior to this round it had raised funding from BCCL’s Springboard Fund and Karmvir Avant Infotech Pvt Ltd.
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Nitan Chatwal, Promoter of Shrem Strategies adds, “Localbanya is one of the established players in the online grocery segment in Mumbai having been in operation for close to three years. They have put in place an aggressive expansion plan for 2015 to take the brand across India. The online grocery market is set to grow very rapidly in India over the coming years and we felt now is a good time to get in. Making a great investment decision involves various factors of which potential scale and timing are key. We felt these 2 crucial factors are perfect right now and it falls in line with our investment philosophy. The Localbanya team has done a fantastic job so far and we want to be part of their journey.”
Localbanya was the first player to enter the online grocery market in Mumbai back in 2012. The startup was the first to develop multiple innovative ideas such as offering deliveries up to 11:30 pm. Localbanya currently lists over 14,000 products on its website and does 850 – 900 deliveries a day in Mumbai, with an average cart value of INR 1400 per order.
Number of startups in the grocery space have attracted funding in the recent times, these include PepperTap, a hyperlocal grocery delivery service platform, raised an undisclosed amount of seed funding from Sequoia Capital. Earlier in the year online grocery retailer BigBasket had raised $15 Mn from Bessemer Venture Partners. Another startup working in the same domain Freshworld has recently raised funding from Kris Gopalakrishnan & IAN. Also, recently Godrej Nature’s Basket has acquired Mumbai-based online grocery store, Ekstop.com.