Frendy, a convenience store network, announced on Monday that it has raised INR 16 crore ($2 million) in a bridge round of funding.
In this funding round, existing investor Desai Ventures, along with new participants such as Auxano Capital, AT Capital Singapore, Metara Ventures, Priya Joseph, Rohan Jain, Rishabh Jain of The Wellness Co., and the Apurva Salarpuria family office, contributed to the investment.
The startup announced that it is considering the possibility of expanding the funding round to INR 24 crore (approximately $3 million) through a subsequent rights issue, as stated in their release.
The startup intends to utilize the newly acquired funds to enhance its technology infrastructure, expand its network of stores, and diversify its portfolio of private-label products.
Established in 2019 by Sameer Gandotra and Gowrav Vishwakarma, Frendy, headquartered in Ahmedabad, operates as an omnichannel convenience store network targeting small towns across India. The platform utilizes pre-existing micro-stores like family-operated kirana shops and newly established home-based stores managed by housewives to serve as last-mile distribution points. Using its app, the startup facilitates the sale of household items, guided by a network of women community leaders.
The startup asserts that it has extended its reach to more than 40 Tier II-VI towns in Gujarat, catering to 50,000 customers and offering a diverse range of over 4,500 products.
Frendy, specializing in beauty, cleaning, grocery, kitchen products, and more within its private-label portfolio, reported a doubling of its revenue from INR 40 crore in FY22 to INR 82 crore in FY23.
Commenting on the startup’s growth plans, Gandotra said, “In our second phase we are going asset & operations light with our Franchised Marts doubling up as a warehouse for our existing micro-stores and in parallel have scaled down our central warehouse.”
“Our goal for the coming 12 months is to have 40 operational Marts and further build out our private label offering. We have now perfected our business model and will continue to grow with right unit economics and scale out the model to the rest of Gujarat & then into other states,” he added.
In May last year, Frendy secured $3 million in an extended Series A funding round, with contributions from the Desai Family office, Let’s Venture Angel Fund, Centera Fund UK, and other investors.
Within the retail tech market, the startup contends with competitors such as New Shop, 1K Kirana, Super K, Citymall, Dealshare, and several others.
According to Statista, India holds the title of the world’s fastest-growing grocery market. In 2020, the Indian grocery market reached $573 billion in size and is projected to grow to $852 billion by 2025.
