Frendy, the innovative startup constructing a digitally connected convenience store network for smaller towns and rural India, has successfully raised a bridge round of ₹16 crores ($2 million). The funding round, led by Auxano Capital, AT Capital Singapore, Metara Ventures, Apurva Salarpuria family office, and existing investor Desai Ventures, signifies a pivotal moment for Frendy’s growth strategy.
Founded in 2022 by Sameer Gandotra, Gowrav Vishwakarma, and Harshad Joshi, Frendy aims to revolutionize retail in Tier 2-6 towns in Gujarat, catering to the needs of 50,000 customers with over 4,500+ products across its 40+ operational stores. The startup’s unique model comprises Franchised Frendy Marts digitally connected to a cluster of Frendy Micro stores.
The company has achieved remarkable success in its second year of operations, boasting a revenue of ₹82 crores in FY23, doubling its performance from ₹40 crores in FY22. This financial accomplishment is complemented by a team of 100 professionals, including an in-house technology team, based in Ahmedabad.
The recent funding will be strategically utilized to expand the tech offering, enhance the private label product portfolio, and increase store count. Frendy’s founders are known for their focus on capital efficiency and measured growth. They project to achieve an Annual Recurring Revenue (ARR) of ₹300 crores in revenue and profitability in the next 24 months, leveraging their existing geographies.
Sameer Gandotra, CEO of Frendy, highlighted their growth strategy, stating, “Our goal for the coming 12 months is to have 40 operational Marts and further build out our private label offering. We have now perfected our business model and will continue to grow with the right unit economics and scale out the model to the rest of Gujarat and then into other states.”
Frendy’s success lies in its unique hub-and-spoke convenience store model, leveraging existing micro stores as last-mile distribution points. The startup’s focus on stores run by women aligns with its commitment to empowering communities and fostering digital shopping adoption.
Gowrav Vishwakarma, Co-Founder of Frendy, emphasized the role of technology in their operations, saying, “Our goal is to make the tech platform simple & frictionless for the stakeholder. Secondly, to make retail processes more efficient with data-based demand forecasting, auto-replenishment, and data-based pricing benchmarking.”
Frendy’s approach to building density in existing areas reflects its commitment to creating a profitable, sustainable, and scalable model, with a strong focus on cost efficiency. The startup’s success story adds vibrancy to the competitive landscape in the grocery and retail tech space, positioning it alongside notable players like New Shop, 1K Kirana, Super K, Apna Mart, Citymall, GoBillion, Dealshare, and Rozana.
As Frendy expands its footprint and product offerings, it continues to shape the future of retail in smaller towns and rural India, providing customers with convenience and accessibility.
