Jumbotail raises $18.2 Mn in Series C3

Jumbotail, a prominent B2B marketplace and retail platform catering to the food and grocery sector, has successfully secured Rs 151 crore ($18.2 million) in a Series C3 funding round spearheaded by Artal Asia Pte. Ltd. The investment consortium includes Heron Rock, Sabre Investment, Arkam Ventures, Jarvis Reserve Fund, Reaction Global, VII Ventures, and other notable participants.

This funding round follows Artal’s leadership in a $85 million Series C round for Jumbotail in December 2021. Additionally, the company had raised $9.5 million in debt financing in March of the previous year, amassing approximately $157 million in combined equity and debt investments thus far.

Jumbotail aims to allocate the raised capital towards expanding its suite of Go-To-Market (GTM) products and services tailored for new and emerging brands, facilitating their access to mass-market consumers through Jumbotail’s extensive network of Kirana stores across the nation.

Harnessing AI-driven technologies, Jumbotail endeavours to enhance customer engagement and increase wallet share by leveraging its robust sourcing capabilities spanning FMCG and staples alongside its efficient Kirana supply chain infrastructure.

Furthermore, the company intends to bolster its workforce across various domains, including deep sourcing, technology, category management, product management, and marketing, to support its ambitious growth agenda.

Ashish Jhina, Co-founder and COO of Jumbotail, articulated, “..We are committed to consolidating our leadership position by deepening our presence in existing markets and facilitating brand outreach to kiranas with unparalleled cost efficiency and expediency.”

Jhina further disclosed the company’s aspiration to achieve total operational profitability across its entire network before the culmination of 2024.

Founded by S. Karthik Venkateswaran and Ashish Jhina, Jumbotail caters to small and medium-sized kirana stores throughout India via its comprehensive B2B marketplace platform, complemented by in-house warehousing facilities and a last-mile delivery supply chain network, ensuring next-day storefront deliveries to kirana outlets. Additionally, the company offers a fintech platform encompassing payment solutions, credit facilities, and financial services tailored for Kirana store owners.

Jumbotail highlights that a substantial portion of its sales is generated through unassisted digital orders placed organically by Kirana stores nationwide via its user-friendly app.

According to insights from startup data intelligence platform TheKredible, Jumbotail’s revenue from operations surged by 2.17X to reach Rs 819 crore in FY23 from Rs 377 crore in the preceding fiscal year. However, mirroring this revenue growth, the company’s losses also experienced a significant uptick, doubling to Rs 264 crore in FY23 compared to Rs 125 crore in the previous fiscal year.