LocalBanya.com raises funding from family office Shrem Strategies
Mumbai-based MN&C Supply Links Retail Pvt Ltd, which owns and operates online super market LocalBanya.com, has raised an undisclosed amount in funding from Shrem Strategies, a family office of Chhatwal family, as per a company statement. The company will use the funding to expand major metros starting with Pune.
"The fresh round of funding sets us on our way to taking the brand to as many Indian households as possible. We have gained a lot of experience in Mumbai and this is the right time to expand our operations," said LocalBanya co-founder Rashi Choudhary.
The company was started in May 2012 by Karan Mehrotra (CEO), Amit Naik (CTO) and Choudhary (COO). Mehrotra is a computer engineer who was previously involved with his family business as a distributor for FMCG firms such as Hindustan Unilever. An IIM-Lucknow graduate, Naik previously worked at Google, Directi and Larsen & Toubro. Choudhary holds an MBA from SP Jain Institute of Management & Research (Mumbai) and prior to setting up LocalBanya, worked at Raymond.
It had raised undisclosed amount in two separate rounds from BCCL's Springboard Fund and Karmvir Avant Infotech Pvt Ltd, respectively.
LocalBanya.com is an online store that offers about 14,000 products across 20 categories (need-based vis-Ã -vis impulse purchase categories), including fruits and vegetables, groceries, personal care, household supplies, detergents, kitchen ware, breakfast cereals and snacks and stationery, among other items.
The website claims to process around 900 deliveries a day and growing at around 25 per cent month on month with the help of a team of over 170 employees, including 75 delivery boys.
It claims of having an average cart value of Rs 1,400 per order.
The top three categories—fruits & veggies, groceries & staples and dairy products—contribute 60 per cent of the gross merchandise value while 8 per cent come from institutional clients, including corporate and restaurants.
Shrem Strategies is a part of Shrem Group of Companies which is a privately owned family business founded by Nitan and Hitesh Chhatwal (brothers). The firm has interest in real estate, finance, hospitality, aerospace and healthcare.
Earlier, it had invested in Perfect Engine Component Pvt Ltd, which manufactures steel and valves used by the auto industry.
LocalBanya competes with the likes of EkStop, another Mumbai-based e-grocery which was acquired by Godrej Nature's Basket and multi-city heavily funded operator BigBasket.
(Edited by Joby Puthuparampil Johnson)