Online grocer Jumbotail raises USD 8.5mn in Series A from Kalaari & Nexus

Moneycontrol News

Jumbotail, an online marketplace for food and grocery has raised USD 8.5mn in Series A from Kalaari Capital and Nexus Venture Partners.

The company plans to utilize the funds for building technology and enhance operational capabilities.

“Manufacturers and brands can instantly get direct and highly targeted access to thousands of retailers and institutional customers through the Jumbotail platform without needing to invest in expensive physical distribution networks. Jumbotail also opens up the Kirana network to financial institutions looking to extend credit in a cost-effective and scalable manner,” said Ashish Jhina, co-founder & COO, Jumbotail.

Founded in Nov 2015 by S. Karthik Venkateswaran and Ashish Jhina, Jumbotail offer products such as staples, spices, dry fruits, packaged foods, and FMCG products.

Sellers (traders, manufacturers and brands) can list their food, grocery and FMCG products on the Jumbotail Marketplace, which is accessible to customers through a mobile app available in 4 languages - Kannada, Malayalam, Hindi and English.

"98% of India’s food and grocery consumption is via Kirana stores. Jumbotail brings tech-centric innovation to address massive inefficiencies in terms of product discovery, distribution costs, stock outs, and pricing. We are excited by their ability to eliminate information asymmetry, aggregate previously unavailable demand and supply data, and significantly improve economic outcomes for manufacturers, brands, financial institutions and kirana owners," said Bala Srinivasa, Partner, Kalaari Capital.

"Jumbotail is going after a very large but inefficient market that requires very strong first-principles approach towards solving challenges across commerce, efficient fulfilment, payments and credit via their platform. We feel this team and their technology platform has a shot at solving these challenges to create enduring value for the kirana / horeca segment over the next few years," said Sameer Brij Verma, Director, Nexus Venture Partners

Nexus Venture Partners had earlier invested USD 2 million in the company.