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Capital raised will be used to fund its central inventory needs to feed its network of Frendy Marts & Micro Kiranas in Tier 3+ towns of Gujarat
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Company has collectively raised a total of Rs 42 crore including the debt
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Frendy’s existing investors include Auxano Capital, AT Capital (Singapore), Desai Ventures, Let’s Venture, MARV Capital (New York), and Metara Ventures (Singapore)
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Frendy currently operates 25 marts & 2000 micro Kiranas across rural Gujarat
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Frendy aims to scale it’s business to 100 Marts & 3,000 Micro Kiranas in the next 12 months.
Ahmedabad, July 18, 2024: FRENDY, a tech-enabled small format grocery chain addressing daily shopping needs of tier 3 and beyond cities, has raised Rs 2 Cr as working capital credit from UC Inclusive Credit (UCIC), an NBFC arm of Unitus Capital. The capital will be deployed to fund its central inventory needs to feed its network of Frendy Marts & Micro Kiranas in Tier 3+ towns of Gujarat.
UCIC, incubated by Unitus Capital, is an impact focused Non-Banking Finance Company (NBFC) and is focused on positively impacting the lives of millions of people by supporting companies with creative and timely debt capital.
Commenting on the development, Abhijit Ray, Managing Director, UC Inclusive Credit, says, “UCIC provides loans to companies which are led by strong founders and supported by reputed investors – these companies are addressing large market needs through innovative products and services. Frendy, promoted by visionary and highly experienced founders, has been catering to the needs of micro and small entrepreneurial ventures in Tier 2 & Tier 3 cities of India and hence UCIC is proud to partner with Frendy’s team.”
Based in Ahmedabad, Frendy was founded in 2019 by Sameer Gandotra, an MBA from the Wharton School and serial entrepreneur, Harshad Joshi, a graduate from ISB, IRMA, and ex-Walmart & Metro Cash & Carry, and Gowrav Vishwakarma, a serial tech entrepreneur.
Sameer Gandotra, Founder & CEO, Frendy, says, “As we aim to scale our business 4x, we intend to raise equity and expand our credit lines. Having a lending partner in UCIC adds additional operational & financial discipline which is always good for early stage startups. We have achieved close to 40 annual turns of inventory at our Central Warehouse as we use our proprietary tech enabled Auto Replenishment System (ARS) to restock out Marts & serve the Micro Kiranas. Such high inventory turns allows us to finance our Central inventory with a credit facility. UCIC has a deep understanding of MSMEs and startups operating in the Bharat sector which makes them a perfect partner for Frendy as we enter our growth phase.”
Frendy is building a network of modern neighbourhood grocery mini-marts that “makes daily shopping better” for consumers in small towns and villages of India. Frendy’s Marts are also digitally connected to a cluster of micro-kiranas (mom-and-pop stores) and their end customers, allowing Frendy to build a last mile digital commerce bridge to serve a wider range of rural consumers. It currently operates 25 Marts & 2000+ micro-kiranas, across rural Gujarat and it aims to expand its business to 100 Marts & 3,000 Micro Kiranas in the next 12 months. The Company had a revenue of Rs 82 Cr for FY23 and aims to double its sales in the next 12 months as the brand expands its geographical footprint.
Frendy’s unique Hub & Spoke model allows it to generate retail margins at its Marts & has a tech-enabled B2B layer for smooth operations of the micro kiranas. Frendy has also built a 300 SKU-strong private label portfolio.
The Company has recently introduced Fast Food & Beverages, Bakery items & children’s entertainment at its Marts which has shown positive results.
Corporate Comm India (CCI Newswire)
