Jumbotail, the B2B marketplace and retail platform, has successfully raised INR 151 crore ($18.2 million) in its Series C3 equity funding round. The funding was spearheaded by Artal Asia, a venture capital firm based in Singapore. Other participants in the round include Heron Rock, Sabre Investment, Arkham Ventures, Jarvis Reserve Fund, Reaction Global, and VII Ventures.
The Bengaluru-based startup will utilize the funding to expand its suite of go-to-market products and assist new and emerging brands in reaching the masses through its nationwide network of kirana stores, as stated in a release.
Founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, Jumbotail operates as a full-stack B2B marketplace, providing a range of services including tech-driven warehousing and a last-mile delivery supply chain network tailored to small and medium enterprises. Additionally, the company facilitates next-day storefront deliveries to kirana stores and offers a fintech platform for payment solutions, credit options, and financial services to kirana store owners.
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Jumbotail is currently developing artificial intelligence-driven technologies aimed at increasing customer wallet share within the FMCG and staples sectors, as well as optimizing kirana supply chains.
According to the company, it boasts a 60% penetration rate in kirana stores across the cities it operates in, holding the highest wallet share and monthly purchase frequency among small and medium-sized kirana stores in the industry. Jumbotail highlights that nearly all of its sales, approximately 100%, stem from unassisted digital orders placed directly by kirana stores nationwide through the Jumbotail B2B digital retailer app.
In total, Jumbotail has secured $143 million in equity funding from notable investors such as Artal, Heron Rock, Nexus Ventures, Kalaari Capital, Jumbo Fund, and Arkam Ventures. Additionally, the company has obtained approximately $14 million in venture debt from prominent venture debt firms Alteria Capital and Innoven Capital.
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“We are excited to see Jumbotail execute sustainable growth at scale, with a strong focus on profitability and capital efficiency. Since Artal’s first investment in Jumbotail in 2021, Jumbotail has continued to demonstrate its differentiation and market leadership in the digital enablement of the kirana ecosystem,” Benjamin Felt, Board Member of Jumbotail and Managing Director of Invus (the global advisor of Artal), said.
In FY23, Jumbotail reported a loss of INR 264 crore, nearly doubling from INR 124.7 crore in the prior year. Despite this, its revenue from operations surged to INR 819 crore, reflecting a remarkable 117% increase compared to the previous fiscal year when it amounted to INR 377 crore.
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