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Subscription-based grocery delivery startup, RainCan, has raised an additional funding of about $150K (INR 1 Cr.) in its angel round funding led by Aniruddha Malpani and others. This is a follow-up of the angel round that RainCan had raised in August 2015. The startup is also said to be in talks with potential investors to raise another $2 Mn.
The Pune-based startup will use the additional capital to increase its customer base and set up state-of-the-art logistics platform from farm/factory to door-step delivery in order to ensure quality.
Founded in June 2015 by Munendra Singh and Abhijeet Kumar, RainCan is a subscription-based service provider dealing in dairy, meat, bakery, fruits, and vegetables largely. The startup claims to process about 2000 orders per day.
There is no minimum order size restriction. The startup can deliver single coconut water daily to a customer as they have multiple customers from the same society. For subscription, a customer has the comfort to pause and start the service based on his plans. RainCan app provides one-click solution for this, without going through the payment process on every order. The payment can be made separately to recharge the RainCan Wallet.
Abhijeet Kumar, co-founder of RainCan, said, “India is unique market in it’s own way. Relationship and engagement takes priority over price. We believe subscription is the way India will shop online. One time order does not guarantee customer loyalty till the time it does not happen 6-8 times a month at least. Once you have subscription or frequent buying customer base, you can position different product categories or even high end services to them, and they won’t mind trying your services as they know you are the guy who solves their daily problems.”
The startup claims to be the only subscription-based products and services provider in India to run its own logistics and manage its entire supply chain to ensure quality and profitability. Hence, they do not have any direct competition in subscription space in Pune from any online player. However, “offline stores are always competition in categories RainCan deals with,” said Abhijeet.
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