Monday, February 26, 2018
Doodhwala Secures $2.2 Million in a Round of Seed Funding by Omnivore
Doodhwala, a micro delivery service for fresh groceries has received a seed investment of $2.2 million by Omnivore, a venture capitalist firm, for a minority stake in the company. The hyperlocal delivery platform, Doodhwala, is a subscription-based, early-morning delivery platform for all farm fresh groceries sourced directly from local farms and dairies.
“Doodhwala with it's unique model has had a tremendous momentum, becoming a well-known brand for fresh milk and grocery delivery in Bengaluru & Pune. We are evolving into the finest delivery service option for customers seeking freshness, convenience and specialty products,” said Aakash Agarwal, Co–Founder, Doodhwala.
“Doodhwala’s unique business structure benefits customers, dairies and supermarkets. It makes farm-to-fork viable by taking over sales, marketing, logistics, and fulfilment for producers. Additionally, we are expected to scale easily due to our capital effective model, paired with the high demand for milk, and a need for regulated milk supply”.
Commenting on the transaction, Jinesh Shah, Founding Partner, Omnivore said, “The lean operating model, and the direct sourcing relationships that have been built, made this company stand out amongst competitors.”
Doodhwala offers users a wide selection of ad hoc everything from fresh dairy milk, meat, vegetables, fruits to shelf stable items delivered to their door before 7 am every day. Users get the convenience of ordering on subscription basis which helps in frequent and easy purchases.
“Our unit economics are exceptionally strong. By lowering our delivery cost to Rs 3, Doodhwala is uniquely positioned in a market where other players are struggling. We have done a great job of maintaining a steady month-on-month growth rate while scoring a 85% plus customer retention,” said Ebrahim Akbari, Co–Founder, Doodhwala.
Currently operating in Bangalore and Pune, Doodhwala has over 4 lakh month deliveries. The new financing will go towards expanding Doodhwala’s service into new markets, funding talent acquisition and upgrading technology.
Reihem Roy, Principal, Omnivore will join the board.
The new funding comes less than a year after the company raised an undisclosed amount in another Pre Series A funding from Thomas Varkey, a partner at Stonehill Capital, USA.