The funding was led by three senior executives in the insurance, telecom and investment banking sectors, whose names have not been disclosed. Existing investors including Palaash Ventures have also participated in the round.
The raised capital would be used to expand the company’s services to other cities. “The funding will be used to strengthen technology backbone and expand into other geographies,” said Rahul Hari, CEO, SatvaCart.
SatvaCart operates on a hybrid model, sourcing from neighbourhood stores to supply groceries to customers, as well as stocking its own inventory. “We are following deeper penetration model. This allows us to stabilise while not getting too thin too fast,” said Hari.
It has witnessed more than 200% growth in order volume as well as GMV in last 2 quarters. It offers a range of over 4000 products and has a customer base of over 5000. Adding to its attributes, is the 90 mins delivery service which the company facilitates.
According to a report, the Indian online grocery market is set to hit Rs 2.7 billion mark by FY’2019 following the surge in number of players operating in the industry. Traditional grocery stores will continue to be a part of the market but the share of online groceries will continue to increase at a high growth rate. The market will also witness the introduction of newer players and better models, states Ken Research.