Mumbai based LocalBanya raises investment from BCCL’s Springboard fund
LocalBanya.com, Mumbai’s online grocery supermarket, has raised an undisclosed investment as part of BCCL’S Springboard fund. LocalBanya was founded in the later half of 2012 by Karan Mehrotra, Amit Naik and Rashi Choudhary and has raised money from Springboard that focuses on asset lite businesses that are advertising dependent in nature, through significant equity participation by the Times Group (BCCL).
BCCL through Springboard have been actively seeking to partner companies who show the potential of becoming market leaders. LocalBanya was selected after a screening process over a period of several months based on an assessment of LocalBanya’s core processes, the commitment of their team, the traction they have already achieved, vision they have for growth and expansion.
LocalBanya has over 8,000 registered users, and it serves about 200 orders every day with an average ticket size of INR 1375. A team of 60 in all, LocalBanya has crossed Rs. 10 million in revenues in the first quarter of 2013.
LocalBanya currently focuses on Mumbai city, and delivers end-to-end within municipal limits from 9 a.m. up to midnight. It has its own delivery teams and retains direct control over logistics with its own dedicated fleet. The technology is customized to allow procurement, customer service and the website front end to work in harmony and with optimal efficiency.
The household retailing market in India is estimated to be over USD 500 billion, and approximately 70% of that is just groceries. Only about 6-8% of this is in the organized sector, and in this the share of online grocery sites is negligible. This is where LocalBanya wants to step in and plans to eventually have a presence in every metro and over 80 other cities all over India (other players in the space include Bangalore based ZopNow, PuneExpress from Pune, etc)