Online grocery delivery company Satvacart closed its Pre Series A round of funding today.
Angel Investors including Kuldeep Puri, senior executive at Hitachi Energy, UAE, Shailendra Kumar, senior executive at ABB, UAE, and Siddhartha Garg from Google UK, Madhu Sudana Rao Kalagarla, a senior executive at Adani Group and Srinivas Kotta, another senior executive from Adobe participated in the round.
Founded in 2014 by Deepika and Rahul Saxena, Gurugram-based Satvacart delivers groceries and other essentials to customers. According to the startup, it reached ‘complete cash breakeven in 2020’ and is now working on expanding its business to reach 13 cities in the next 24 months, with a target GMV of $1 Bn and a 10% EBIT.
Satvacart is also amidst advanced discussions to close a $50 Mn round from venture capital funds and family offices. Quick commerce is estimated to be a $30 Mn market in 2021 and is expected to grow up to 15x to reach $5 Bn in 2025, according to Redseer.
“While building up the systems for replicability, we built systems to pick up a standard order of 23 odd products within a time span of 2 minutes. The remaining time is left for deliveries. This could be done in a time span of 30 minutes in a 5 km radius of the fulfillment center or it could be done in a time span of 10 minutes in a 2 km radius micro cluster,” said Deepika Saxena, cofounder and CTO at Satvacart.
The startup also works with dark stores situated in high population density areas. According to Satvacart, these dark stores are 100% digitised and modular with no paper involvement in picking, packing, sorting and delivery. The inventory in these dark stores stays on the books of suppliers, creating a low working capital business.
Earlier this week, another grocery delivery startup, Zepto had raised $30 Mn at a valuation of between $200 Mn and $300 Mn in an early-stage funding round led by Glade Brook Capital, Nexus, and Y Combinator. Angel investors like Lachy Groom, Neeraj Arora, Manik Gupta and others also participated in the round.
Zepto uses a network of dark stores to uphold its promise of being able to deliver groceries within 10 minutes up to 90% of the time.