Bangalore based startup, Jumbotail Secures INR 75 Crore Debt Funding

• ByStartupStory     |    March 14, 2023

Jumbotail, a B2B food and ecommerce marketplace in Bengaluru, announced today that it has secured a debt funding of INR 75 Cr from Innoven Capital and Alteria Capital. The company plans to use the funds to enhance its sourcing capabilities and implement AI-powered technologies to increase customer wallet share, achieve 100% growth in net revenue, and attain operational profitability within the next 12 months.

Jumbotail, the Bengaluru-based B2B food and ecommerce marketplace, aims to expand its retailer base to 4 lakh and achieve over 80% market penetration in the next year. The startup currently operates in more than 50 cities and has over 2.5 lakh retailers. To support its growth plans, Jumbotail will accelerate hiring in key areas such as deep sourcing, category management, product management, AI/ML, and marketing. Founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, Jumbotail offers a comprehensive suite of go-to-market services for brands seeking to target the kirana market and influence both retailer and consumer demand. The online B2B marketplace focuses on groceries and food and serves primarily wholesale buyers.

 

Jumbotail operates an omnichannel retail brand called J24 that facilitates both online and offline sales for kirana stores. The startup also partners with hyperlocal delivery companies such as Dunzo. Alteria Capital’s managing partner, Ankit Agrawal, expressed confidence in Jumbotail’s ability to achieve sustainable growth at scale while maintaining a focus on profitability and capital efficiency. Agrawal further added that Jumbotail is poised to become the leading player in the $500 billion kirana B2B food and grocery market.

Jumbotail currently claims a 60% penetration in the kirana store market it serves. The startup competes with players such as BigBasket and Udaan, among others. To date, Jumbotail has raised approximately $139 million in funding from investors, including Kalaari Capital, Invus, Heron Rock, VII Ventures, Nexus Ventures, Arkam Ventures, Alteria Capital, and Innoven Capital.

Jumbotail raised $85 million in a Series C funding round led by Artal Asia in December 2021, following its $25 million Series B funding round in January of the same year. Despite the Covid-19 pandemic’s impact, Jumbotail’s consolidated revenue increased by 8% YoY to INR 127.5 crore in FY21. The startup’s net loss decreased by more than 32% to INR 43.9 crore in FY21 from INR 64.8 crore in FY20.

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