Frendy Secures Rs 2 Crore Debt Fund from UC Inclusive Credit to Fuel Expansion
- ByStartupStory | July 17, 2024
Ahmedabad-based Frendy, a burgeoning micro kirana chain, has announced a significant financial milestone with the procurement of a Rs 2 crore debt fund from UC Inclusive Credit (UCIC), the NBFC arm of Unitus Capital. This capital infusion marks a pivotal step for Frendy as it intensifies its efforts in bolstering its central inventory to support its expansive network of 25 marts and 2,000 kirana stores across rural Gujarat.
Founded in 2019, Frendy has swiftly established itself as a frontrunner in the modern neighbourhood grocery mart segment, catering specifically to customers in small towns and villages. The company now sets its sights on further scaling its operations, aiming to expand its footprint to encompass 100 marts and 3,000 micro kiranas within the next 12 months.
“This latest funding round underscores our commitment to enhancing the accessibility and convenience of essential goods for communities in underserved regions,” remarked Sameer Gandotra, Founder and CEO of Frendy. “With an already robust revenue of Rs 82 crore in the fiscal year 2022-23, we are poised to double our sales with strategic geographical expansion initiatives.”
Frendy has garnered support from a diverse group of investors including Auxano Capital (Gurugram), AT Capital (Singapore), Desai Ventures, Let’s Venture, MARV Capital (New York), and Metara Ventures (Singapore), bringing its total capital raised to an impressive Rs 42 crore.
“Our innovative hub & spoke model has proven instrumental in generating retail margins and leveraging a tech-enabled B2B layer to effectively manage our micro kiranas,” Gandotra added. “Our proprietary Auto Replenishment System (ARS) ensures nearly 40 annual turns of inventory at our central warehouse, enabling efficient restocking and service to our network.”
Abhijit Ray, Managing Director of UC Inclusive Credit, highlighted the strategic alignment of the partnership, stating, “UCIC is committed to supporting visionary founders like those at Frendy, who are driving transformative change in Bharat’s MSME sector. This collaboration reflects our confidence in their innovative approach and strong market positioning.”
Frendy’s diverse private label portfolio, boasting 300 SKUs, continues to expand with recent additions such as Fast Food & Beverages, Bakery items, and children’s entertainment offerings at its marts, further enhancing its appeal to local consumers.
With this latest financial backing from UC Inclusive Credit, Frendy is well-positioned to not only consolidate its market presence but also to pioneer new standards in the micro kirana segment across India’s Tier 2 and Tier 3 cities.
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