Delhi-based retail tech startup Daalchini has raised $4 million in a Series A funding round led by Unicorn India Ventures, with participation from prominent and existing investors, including Artha Venture Fund, Ajay Kaul (former CEO of Dominos India), and VSS Investco (the investment vertical of Vijay Shekhar Sharma – CEO of Paytm).
Founded in 2017 by ex-Paytm colleagues Prerna Kalra and Vidya Bhushan, Daalchini said it takes affordable snacks and home-style meals to its customers through technology-efficient models like automated kiosks, mobility retails, and smart vending machines.
It provides instant, affordable, 6-meals-a-day food options through IoT-enabled ‘phygital’ (physical+digital) vending machines.
The current round of funding will help the startup to expand its industry footprint and its technology capabilities. It aims to make its solutions asset-efficient and accessible to 10 million retail points in India and 450+ F&B D2C brands, it said.
“Daalchini aims to establish its footprints at every 200 meters of habitable area with its autonomous smart stores and vending machines. Today, our country has just a few thousand vending machines, while the US or Japan has more than one autonomous store for every 200 people. We are far from the true potential of this kind of retail,” said Prerna Kalra.
Daalchini said it has grown 300% in the last 12 months, making it one of India’s fastest-growing Retailtech startups. It has achieved a Product Market Fit (PMF), with Rs 12 crore revenue in FY2022. More than 90% of its vending machines are EBITA positive within 45 days, it claims.
“We quickly expanded our network to 11 states and 23 cities with 850+ stores. We will continue leveraging our unique tech and supply chain for fresh and packaged food to reach 50+ cities,” Prerna adds.
Providing a high-return customer acquisition platform for D2C brands, Daalchini said it has collaborated with more than 160 brands like Sleepy Owl, The Whole Truth Foods, Open Secret, Yoga Bar, Slurrp Farm, BRB, Cremica Opera, Cravova, Millet Bowl, Yogapulp as well as industry giants like Dabur, Nestle, Mars.
Daalchini’s Retail-as-a-Service platform enables these brands to grow in hundreds of physical stores while tracking real-time insights digitally.
Speaking on the investment, Ruchi Pincha, Investment Associate, Unicorn India Ventures, said, “The RetailTech segment in India is going through a massive transition from its traditional physical store form to a digital one, the speed of which has been intensified by the pandemic. In this phase, Daalchini represents the best of both worlds with a ubiquitous physical presence backed by a strong technological framework that prioritizes its customers’ needs and convenience. At Unicorn India Ventures, we are always looking to support such companies that retain the unique essence of their sector and work on enhancing the overall customer experience with technological innovation.”
The startup has tied up with leading companies like Reliance, Aditya Birla Group’s Hindalco, Vodafone, GE, Genpact, NITI Aayog, Housr, MX Player, Samsung, Paytm, Snapdeal, Byjus, EY, OLX, OYO, Loreal and VIVO, among others.
Anirudh A. Damani, Artha Venture Fund, said,“As the earliest backer of Daalchini, we are excited to see the Company deepen its footprints within the industry through its fully integrated IoT solutions. They provide a convenient, safe, and affordable snacking solution for the working population while delivering real-time insights, vast reach, increased accessibility, and better control of marketing spending to food brands, all at the click of a button.”
According to the Kearney India Retail Index, the retail industry, dominated by the food and groceries sector, will grow at a 9% rate from $779 billion in 2019 to $1,407 billion in 2026 to $1,884 billion in 2030.
Despite the pandemic, research finds that the industry has and will continue to grow on the back of value e-commerce and an unprecedented reach across Tier 2 and Tier 3 cities.
These trends align parallelly with Daalchini’s growth trajectory and plans, which will help unlock growth opportunities in untapped markets of the country.
Source @Indianstartupnews
