RainCan, a Pune-based grocery eCommerce start-up has raised $100k in a round of funding.
RainCan, founded by Indian Institute of Technology Bombay graduates Abhijeet Kumar and Munendra Singh, is a subscription-based service provider dealing in home delivery of dairy, meat, bakery, fruits and vegetables.
“Everyday we have a problem in terms of daily planning of groceries. We are trying to solve that problem. The whole idea is to promote fresh eating,” said Co-founder Abhijeet Kumar. Adding further, he stated, “the target is to deliver in the morning slot but as a top-up we are offering deliveries during the day also. Target group includes nuclear families, bachelors and college going students”.
Their recent round of investment has enabled the company to processes from 20 orders a day to 500 orders a day. “I have participated in this round as an investor. To scale up further to 5000 orders a day, they have already started looking for a 1 million funding round,” said Ajeet Khurana, one of the investors.
Commenting on the matter, Munendra Singh, Co-founder said, “Both of us founded an agri-based venture in 2010 where we were growing cut-flowers in greenhouses, selling them in wholesale as well as selling them through our website. That experience helped us in building an understanding of the supply chain of retail especially perishables.”
The start-up has partnered with distributors of Nestle, ITC and P&G among other fast moving consumer goods companies and earns 10-15% margin on a range of products. RainCan has over 4,000 variety of products on its platform, and is planning to add more. It is also planning to increase the strength of its team from 12 at present to 40 in the next two quarters.
RainCan is currently operational in Pune. The company is in talks to raise another $1million soon for enhancing its technology and infrastructure, confirmed Singh.