B2B marketplace Jumbotail raises Rs 151 crore led by Artal Asia

Jumbotail, a B2B marketplace and retail platform specializing in food and grocery, has raised Rs 151 crore ($18.2 million) in a Series C3 funding round. 

The round was led by Artal Asia, with participation from a consortium of investors, including Heron Rock, Sabre Investment, Arkam Ventures, Jarvis Reserve Fund, Reaction Global, and VII Ventures. 

What will the funds be used for?

The startup plans to use the raised capital to scale its suite of go-to-market (GTM) products and services. These initiatives are designed to support new and emerging brands in reaching mass market consumers through Jumbotail’s extensive network of Kirana stores across the nation. 

Additionally, the startup plans to bolster its teams across various departments, including deep sourcing, technology, category management, product management, and marketing, to further enhance its offerings.

Serving small and medium Kirana stores

Founded in 2015 by S. Karthik Venkateswaran and Ashish Jhina, Jumbotail has carved a niche for itself by serving small and medium Kirana stores across India.

The startup offers a comprehensive B2B marketplace platform, in-house warehousing, and a last-mile delivery supply chain network that ensures next-day deliveries to storefronts.

Moreover, Jumbotail is advancing its technological capabilities by developing AI-driven technologies aimed at increasing customer wallet share across FMCG and staples alongside its Kirana supply chain.

How well Jumbotail is performing financially?

Jumbotail has demonstrated significant growth, with its revenue from operations soaring to Rs 819 crore in FY23, up from Rs 377 crore in FY22. However, it's important to note that the company's losses also increased, nearly doubling to Rs 264 crore in FY23 from Rs 125 crore in the previous fiscal year.

Despite these challenges, Jumbotail maintains a strong market position, claiming 60% penetration in kirana stores in the cities it operates, and nearly 100% of its sales are generated through unassisted digital orders placed via its B2B digital retailer app.

What's next for Jumbotail?

With this round of funding, Jumbotail will focus on further expansion and aims to achieve full profitability on an operational basis across its entire network before the end of 2024.

"We will strengthen our leadership position by going deeper into our existing markets and by helping brands reach kiranas with the lowest total cost of activation and the fastest route to market in the sector," said Ashish Jhina, Co-founder and COO of Jumbotail.