Jumbotail has completed its series B2 round by raising $14.2 from investors on Friday. With the latest capital infusion, the Bengaluru based startup raised total $25 Mn in the series B2 round. The company had initiated the series B2 round in October last year after it raised $11 Mn from investors.
The latest tranche in the series B round was led by VII Ventures while Nutresa, Veronorte, Nexus Venture Partners and other investors also partipcated in the round.
Ashish Jhina, co-founder JumboTail, “Jumbotail will use the funds to scale the business to new regions, to double down on our J24 store network and to launch a suite of services to help FMCG brands go to market exponentially faster and at the lowest cost. We are looking to bring in more top talent across the entire company to power this explosive growth.”
Jumbotail is essentially a B2B wholesale marketplace that sources food and groceries to small mom and pop stores and large supermarkets. The startup claims that it currently serves 30,000 small stores in its full-stack e-commerce model.
Jumbotail offers the following services in its full-stack e-commerce model
- Supply chain network
- Last mile delivery
- Fintech platform for offering credit facilities
Over the last few months, Wholesale and Mom & Pop stores have attracted huge traction & interest. It won’t be an exaggeration to claim that the wholesale space is creating the next wave for the e-commerce sector.
From big players like Fipkart, Reliance JioMart and Amazon to emerging startups like Udaan and JumboTail, the wholesale food & grocery market has suddenly become highly competitive. With Tata’s also in talks to buy BigBasket, this space may see further heightened competition.
India’s food and grocery market size is estimated to be around $350 Bn with small kirana stores controlling more than 95% of the market. Retail analysts claim that while the growth opportunity is huge in the wholesale space, bringing small kirana stores in the organized market won’t be all that easy.