Wheelocity, a supply chain network for fresh products, secured $15 million (INR 126.5 crore) in Series A2 investment round. This was led by existing investor Lightspeed, with participation from Alteria Capital, Anicut Capital, and the company’s founder, Selvam VMS.
Wheelocity to reach 20,000 towns and villages in next year
According to INC42, the startup aims to expand beyond essentials like fresh produce and groceries, into non-food FMCG items, staples, household essentials, and other products. With the new funding, the startup aims to reach 20,000 towns and villages over the next year, targeting 10 million consumers. Currently operating in Tamil Nadu, it plans to expand into South Indian states such as Karnataka, Telangana, Kerala, and Andhra Pradesh.
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Notably, Wheelocity plans to upgrade its technology and increase its presence to serve semi-urban and rural customers more effectively. The company’s growth strategy involves advancing its online platforms, expanding local networks, and strengthening its teams in management, operations, product, and engineering.
Wheelocity raises total $27 Mn led by Lightspeed and others
For now, the company has secured $27 million. In 2022, they secured $12 million in Series A funding, led by Lightspeed Venture Partners and Anicut Capital, combining equity and venture debt. Selvam VMS, the founder and CEO, said their goal is to create a commerce system tailored to the unique needs and opportunities of these markets.
Established by Selvam VMS and Senthil Kumar in April 2022, this supply chain startup aims to tackle supply chain issues for fresh commerce in India. For initial days, it operated as a B2B model working with ecommerce companies, but in October 2023, it shifted focus. Now, it aims to create a semi-urban and rural ecommerce platform.
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“We reached product-market fit around February-March this year when we were present in just 30 villages. Now, we are present in 3,500 villages and have experienced significant growth. We have scaled up to 100X over the last six months. Our next goal is to expand to 20,000 villages within the next year,” Selvam said while talking to INC42.
Meanwhile, the startup uses a “phygital” model, combining physical and digital services, to reach semi-urban and rural consumers in India, where access to essential products is limited. Focusing on fresh and grocery products, the company delivers daily to towns and villages through a high-frequency supply chain. Consumers can order via a mobile app or buy directly from three-wheel electric carts that visit their villages.
“This offline presence builds trust with consumers, encouraging them to gradually shift to online purchasing,” the CEO further said.
