Apna Mart secures $25M funding from Fundamentum, Accel, others

164

Apna Mart, a franchise-driven omnichannel grocery and FMCG startup, secures Rs 214.5 crore (approximately $25M) in a mix of equity and debt funding. The investment round was led by Fundamentum Partnership Fund and Accel, with participation from existing investors. According to regulatory filings sourced from the Registrar of Companies (RoC), the company issued 6,342 Series B compulsory convertible preference shares at Rs 2,78,402 each to raise Rs 176.5 crore ($20.5 million). Additionally, 3,800 debentures worth Rs 38 crore ($4.5 million) were also issued.

Fundamentum led the round with Rs 84 crore, while Accel India contributed Rs 60.88 crore. Peak XV and Sparrow Capital invested Rs 17.4 crore and Rs 4 crore, respectively. Other investors, including 2 AM Ventures, Disruptors Capital, and Alteria Capital, contributed the remaining amount.

Entrackr estimates that Apna Mart’s valuation has jumped 81% since its previous funding round, now standing at Rs 738 crore ($87 million). The company, founded by Abhishek Singh and Chetan Garg, operates in 14 cities, ensuring 15-minute grocery deliveries alongside physical stores. With a franchise-led expansion approach and growing revenues, Apna Mart is a rising challenger in the Indian quick commerce sector.

1. Apna Mart’s Business Model and Services

1.1 Omnichannel Grocery & FMCG Retail
Apna Mart follows an omnichannel model, integrating online grocery deliveries with offline retail stores. The startup uses a franchise-driven approach, allowing partners to operate stores while ensuring a seamless digital ordering system. This hybrid model helps the company maintain efficiency, reduce costs, and scale rapidly.

1.2 Revenue Model
Apna Mart generates revenue through franchise fees, commissions on sales, and its own private-label products. The company also earns from premium partnerships with FMCG brands, enabling them to showcase products prominently on its platform.

1.3 Market Presence & Expansion Strategy
Currently, Apna Mart operates in 14 cities, including Ranchi, Hazaribagh, and Bilaspur. It plans to expand aggressively across Tier-2 and Tier-3 cities, focusing on regions underserved by large quick-commerce players like Blinkit and Zepto.

1.4 Speed & Efficiency in Deliveries
Apna Mart guarantees 15-minute grocery deliveries, competing with players like Swiggy Instamart and Blinkit. It achieves this through strategically placed micro-warehouses and partnerships with local store owners.

2. Founders and Investment History

2.1 Founder Background
Abhishek Singh and Chetan Garg founded Apna Mart to address inefficiencies in grocery retail. Singh brings expertise from the retail industry, while Garg has experience in supply chain management.

2.2 Previous Funding Rounds
Before this round in which Apna Mart secures $25M, Apna Mart raised approximately $15 million across multiple funding stages. Titan Capital was one of its early backers.

2.3 Investor Participation & Ownership
Following the latest funding, Accel India holds a 20.91% stake in the company, while Peak XV owns 13.06% and Fundamentum holds 11.39%.

3. Financial Performance & Growth

3.1 Revenue Surge
In FY 2023-24, Apna Mart’s revenue grew by 85.6% year-on-year to Rs 59.6 crore, driven by increased customer adoption and franchise expansion.

3.2 Profitability & Losses
Despite revenue growth, Apna Mart’s losses increased by 51.4%, reaching Rs 33 crore. However, the company remains focused on long-term profitability through improved unit economics and operational efficiency.

4. Competitive Landscape & Future Plans

4.1 Rivalry with Quick Commerce Giants
Apna Mart competes with Blinkit, Swiggy Instamart, and Zepto, all of which have raised substantial capital. Unlike these players, Apna Mart’s franchise-led approach gives it a distinct advantage in smaller cities.

4.2 Planned Expansion
With fresh funding, Apna Mart aims to double its presence in the next 18 months, adding more cities and expanding its micro-warehouse network.

4.3 Technology & Logistics Enhancements
The startup plans to invest in AI-driven inventory management and automated order fulfillment to further optimize deliveries and reduce costs.

5. Learning for Startups and Entrepreneurs

5.1 Franchise-Led Scalability
Startups can leverage a franchise-driven model to scale efficiently while reducing operational risks.

5.2 Balancing Growth and Profitability
Rapid expansion often leads to increased losses, but focusing on unit economics can help achieve sustainable growth.

5.3 Strategic Market Positioning
Targeting Tier-2 and Tier-3 cities can provide an advantage over competitors focused on metro areas.

5.4 Investment in Technology
AI-driven supply chain optimization can enhance efficiency and improve customer experience in the retail sector.

The Startups News – Your Ultimate Startup Media Hub

When it comes to covering the latest startup ecosystem trends, funding updates, and entrepreneurial insights, The Startups News is your go-to platform. Our in-depth coverage of businesses like Apna Mart helps aspiring entrepreneurs stay informed about industry shifts and investment patterns. Stay ahead with The Startups News for daily updates on emerging business models, funding rounds, and startup success stories.

Write something…