Mitra, a direct-to-consumer (D2C) FMCG startup, has set its sights on an impressive target. Founder and CEO, Abhishek Kaushik, envisions Mitra achieving a gross merchandise value (GMV) of INR 34 crore by the end of the financial year 2023-24. This ambitious goal reflects Mitra’s determination to make a significant impact in the market.
Presently, the company’s Gross Merchandise Value (GMV) stands at INR 3.03 crore, while the Annual Recurring Revenue (ARR) amounts to INR 13 crore. By maintaining a profit margin of 20-25 percent, the company aims to achieve a revenue target of INR 7 crore in the current fiscal year.
The brand experiences a repeat rate of approximately 74-78 percent. Currently, 75 percent of its sales originate from the offline market, while the remaining 25 percent is derived from the online market.
Established in 2022, the company secured its initial funding of approximately INR 1.05 crore in February of the current year. Since then, it has successfully raised a cumulative fund of nearly INR 2 crore up until now.
Speaking on the company’s investment plans, Kaushik shared, “We look to invest funds in innovation, inventory management, automation, technology, strengthening the omnichannel approach and distribution operations.”
The brand, based in Gurgaon, specializes in a diverse range of consumer goods. Their product lineup includes flour, pulses, spices, dry fruits & nuts, rice, instant mixes, millet-based items, and ready-to-eat products. To ensure efficiency and agility, the company follows an asset-light model by either sourcing products directly from farmers or establishing partnerships with local manufacturing mills.
On the product strategy, Kaushik said, “We are launching the products which are an instant hit, basis the study we have done in the market.”
The company aims to cater to markets spanning tier 1 to tier 3 regions, encompassing a wide range of potential customers. Additionally, the company intends to develop its own target audience to further expand its reach. Presently, the brand boasts an extensive network of approximately 2,500 distributors in the Delhi-NCR region.
According to Kaushik, the initial strategy was to establish a distribution network as the primary means of scaling the business. Looking ahead, he aspires to replicate a similar offline distribution approach in the coming days.
Based on a report by the Indian Brand Equity Foundation (IBEF), the Fast-Moving Consumer Goods (FMCG) market in India is projected to experience substantial growth in the coming years. It is estimated that the FMCG market will expand at a compound annual growth rate (CAGR) of 14.9%, reaching a value of USD 220 billion by 2025. This growth is significant considering that the market was valued at USD 110 billion in 2020. The Modern Trade (MT) sector is expected to play a crucial role in driving this expansion, with an anticipated annual growth rate of 20-25%. Consequently, the FMCG companies are likely to witness a considerable boost in their revenue as a result of this growth in the MT market.
Seeing the potential in the market, Kaushik said, “We want to disrupt the consumer goods market with affordable and scalable products.”
The significant growth of the Direct-to-Consumer (D2C) industry can largely be attributed to the increasing influence of tier-2 and tier-3 cities. The expanding digital connectivity in these areas has led to a surge in demand for Fast-Moving Consumer Goods (FMCG). As a result, Mitra has strategic plans to extend its business operations into Western Uttar Pradesh and Jharkhand, capitalizing on the thriving market in these regions.
The company is undergoing a dual expansion strategy to strengthen its presence. Firstly, it aims to establish its online presence in markets where it currently lacks representation. Simultaneously, it intends to expand its offline operations in markets where it already operates. Additionally, the company has set its sights on venturing into international markets, including Nepal, Bangladesh, and Canada.
Read More: MITRA achieves staggering 3200% growth, unveils advanced Alwar oil plant ahead of funding round