Founded in 2018, 1K Kirana aimed to digitise kirana stores. It grew rapidly but faced severe challenges by 2023.
Expansion
In 2022, 1K Kirana expanded aggressively, securing $25 million in Series B funding and growing to 1,400 stores.
Funding Issues
Financial strain hit in 2023 as expected funding fell short. The company failed to secure the full second tranche of Series B funding, delisted 200-250 stores, and laid off 70% of its workforce.
Rapid Expansion Consequences
Expanded too quickly without sustainable funding, resulting in high operational costs andunmanageable warehouse capacities.
Desperate Pivots and Uncertain Future
1K Kirana pivoted, limiting new stores, raising order values, and cutting SKUs. Yet, it couldn't recover, leading to a distress sale attempt to Info Edge-backed ShopKirana.
1K Kirana Collapse: Bankruptcy, Distress Sale Loom for Info Edge-Backed Kirana Tech Startup