Fresh produce startup Madras Mandi raises Rs 3Cr from Klub

Fresh produce startup Madras Mandi recently raised Rs 3 crore from Klub, a revenue-based financing platform. With the raised capital, the startup aims to enhance its direct-to-consumer (D2C) segment.

Specifically, Madras Mandi plans to utilize these funds to amplify its delivery services within Chennai and establish 20 new stores by the end of 2024. 

What does Madras Mandi do?

Madras Mansi crafts unique farm experiences and hosts inclusive events like "Kootanchoru."

The startup sources wholesale fruits and vegetables selected from top farms in South India and cater to quality-conscious consumers.

In both the B2B and D2C sectors, Madras Mandi plays a pivotal role in connecting local farmers with consumers. The startup claims that its reach extends to supplying produce to 9 out of 10 restaurants in Chennai and serving a vast online user base of over 1 lakh individuals, significantly impacting the lives of over 5,000 farmers.

Prashanth Vasan, the co-founder and CEO of Madras Mandi, said, "Klub has played a pivotal role in Madras Mandi's growth journey. Their exceptional service and prompt timelines have been instrumental, and I've gained invaluable insights into fundraising through our partnership."

Reducing carbon footprint

Madras Mandi adopts eco-friendly packaging for deliveries, which helps reduce carbon footprint. Additionally, the startup's tech-driven supply chain management system has achieved remarkably low wastage of less than 5%, surpassing the industry standard of over 35%.

It is actively working towards establishing 20 new stores by the end of 2024.

What does Klub say about Madras Mandi?

Sudharshan Venkatakrishnan, Senior Vice President at Klub, said, "India's dynamic landscape is witnessing a paradigm shift in the realm of fresh produce where the consumers driven by a pursuit of quality are gravitating towards this sector. In this burgeoning market that is expected to grow ~8% annually from 2024 to 2028, Madras Mandi reigns as the undisputed leader in Chennai and we are thrilled to endorse their vision as they continue to lead the charge in this flourishing market.”