The new financing will go towards expanding Doodhwala’s service into new markets, funding talent acquisition and upgrading technology.
Micro-delivery service startup for fresh groceries Doodhwala on Friday announced that it received a seed investment of $2.2 million from Omnivore, a venture capitalist firm, for a minority stake in the company.
A hyperlocal delivery platform, Doodhwala is a subscription-based, delivery platform for all farm fresh groceries sourced directly from local farms and dairies.
Founded in 2015 by Aakash Agarwal and Ebrahim Akbari, Doodhwala is present in Bengaluru and Pune.
“Doodhwala, with its unique model, has had a tremendous momentum, becoming a well-known brand for fresh milk and grocery delivery in Bengaluru and Pune. We are evolving into the finest delivery service option for customers seeking freshness, convenience and specialty products,” said Aakash.
He adds, “Doodhwala’s unique business structure benefits customers, dairies and supermarkets. It makes farm-to-fork viable by taking over sales, marketing, logistics, and fulfilment for producers. Additionally, we are expected to scale easily due to our capital effective model, paired with the high demand for milk, and a need for regulated milk supply.”
Commenting on the transaction, Jinesh Shah, Founding Partner, Omnivore said, “The lean operating model, and the direct sourcing relationships that have been built made this company stand out amongst competitors.”
Doodhwala offers users a wide selection of ad hoc everything, from fresh dairy milk, meat, vegetables, fruits to shelf stable items delivered to their door before 7 am every day. Users get the convenience of ordering on subscription basis, which helps in frequent and easy purchases.
The new funding comes less than a year after the company raised an undisclosed amount in another pre-Series A funding from Thomas Varkey, a partner at Stonehill Capital, USA.
“Our unit economics are exceptionally strong. By lowering our delivery cost to Rs 3, Doodhwala is uniquely positioned in a market where other players are struggling. We have done a great job of maintaining a steady month-on-month growth rate while scoring an 85-percen- plus customer retention,” said Ebrahim.
Currently operating in Bengaluru and Pune, Doodhwala claims to do over four lakh month deliveries. The new financing will go towards expanding Doodhwala’s service into new markets, funding talent acquisition and upgrading technology.
Gurugram-based Milkbasket, a micro-delivery platform for groceries had, last month, secured a $3 million investment in a pre-Series A round from Unilever Ventures and others.
Early last year, online grocery market leader Bigbasket had raised Rs 45 crore in venture debt from Trifecta Capital.
Supr Daily, Dail Ninja Essentials, and MrNeeds are the other players in the micro-delivery space.