ofScale, a distribution-as-a-service startup, has raised $375,000 in its pre-seed funding round led by early-stage venture capitalist First Cheque, with participation from Matrix Partners India DeVC, Relentless VC, and notable angel investors including Abhishek Goyal, Mekin Maheshwari, and Revant Bhate.
Transforming physical retail for brands
Founded in late 2022 by Suvigna Shour, Tarun Kedia, and Vijay Akkaladevi, ofScale aims to transform the landscape of physical retail for brands.
The startup aims to enable brands, particularly in the beauty and personal care sectors, to establish an affordable brick-and-mortar presence. It leverages a technology-led B2B model to reduce distribution costs compared to traditional offline expansion methods.
Addressing challenges in offline retail expansion
ofScale said it addresses key challenges brands face in offline expansion, such as high sales overheads, slow market entry, and maldistribution. The startup's marketplace model allows brands to lease retail spaces in independent stores, democratizing offline distribution and facilitating easier entry into physical retail spaces.
It claims to have supported over 15 fast-growing beauty and personal care brands in launching offline retail.
What is the purpose of fundraising?
According to ofScale, the raised capital would be utilized to enhance product development and deploy more go-to-market (GTM) strategies.
Suvigna Shour, Co-founder & CEO of ofScale, emphasized the importance of enabling brands to make data-driven decisions for store selection and to initiate sales-driving efforts. Shour said the startup is focused on helping brands launch offline efficiently, selecting the right retail stores based on data, and offering tools for category-specific initiatives.
ofScale plans to expand its services beyond beauty and personal care into other sectors, including grocery and gourmet. It envisions offline distribution as a crucial channel for direct-to-consumer (D2C) brands, aiming to reduce entry barriers and accelerate their venture into offline markets.
Join our new WhatsApp Channel for the latest startup news updates