B2B marketplace Jumbotail raises Rs 151 Cr in Series C3 funding led by Artal Asia

B2B marketplace and retail platform Jumbotail has secured Rs 151 crore ($18.2 million) in a Series C3 equity funding round led by Singapore-based venture capital firm Artal Asia. Heron Rock, Sabre Investment, Arkham Ventures, Jarvis Reserve Fund, Reaction Global, and VII Ventures participated in the round.

The funding will enable the Bengaluru-based startup to expand its suite of go-to-market products and help its new and emerging brands to reach the masses through its nationwide network of kirana stores, it said in a statement.

Founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, Jumbotail offers a full stack B2B marketplace platform, tech-driven warehousing, and last-mile delivery supply chain network to small and medium enterprises. Additionally, it provides next-day storefront deliveries to kirana stores, and its fintech platform for payment, credit solutions and financial services to kirana store owners.

Jumbotail is now building artificial intelligence-driven technologies to drive higher customer wallet share across FMCG and staples and kirana supply, it said on Monday.

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The firm claims to have 60% penetration in kirana stores in the cities it serves along with the highest wallet share and monthly purchase frequency of small and medium Kirana stores in the industry. Nearly 100% of Jumbotail’s sales are generated by unassisted digital orders placed organically by kirana stores across the country via Jumbotail B2B digital retailer app, according to the company.

Jumbotail has raised a total of $143 million in equity fundraise from prominent investors including Artal, Heron Rock, Nexus Ventures, Kalaari Capital, Jumbo Fund, and Arkam Ventures, and about $14 million in venture debt from leading venture debt firms Alteria Capital and Innoven Capital.

“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 Rs 264 crore, nearly doubling from Rs 124.7 crore in the previous year. Its revenue from operations stood at Rs 819 crore, a 117% increase from last year when it was Rs 377 crore.