Logistics firm Ripplr secures $40 million funding round led by Fireside Ventures

• ByStartupStory     |    May 11, 2023

Ripplr, a Bengaluru-based FMCG product distributor, has secured $40 million in funding in a round led by Fireside Ventures, a venture capital firm focused on consumer-oriented investments. The startup leverages technology to facilitate its operations.

Bengaluru-based tech-enabled FMCG product distributor, Ripplr, has secured $40 million in funding in a round led by Fireside Ventures, along with participation from new investors, such as snackmaker Bikaji and sauce and dips maker Neo Foods, as well as existing investors, including Zephyr Peacock, 3one4 Capital, and Sojitz Corporation. 

The funding round also included debt investors, such as Alteria Capital, Trifecta Capital, Northern Arc Investments, and Stride Ventures. According to Santosh Dabke, co-founder of Ripplr, around $12 million of the investment is in debt, while the rest is in equity. Dabke added that the investment from Bikaji and Neo Foods is strategic, as these companies are also Ripplr’s clients.

According to Santosh Dabke, co-founder of Ripplr, “Bikaji, with its significant presence in North India, seeks to capitalize on our capabilities to expand its reach in the South.” He further added that the investment made by Bikaji in Ripplr is strategic in nature and aims to strengthen their collaboration.

Ripplr, which was established in 2019, plans to utilize the recently raised funds to hire additional personnel and expand its operations beyond South India to additional cities. The startup offers a plug-and-play service that enables brands to distribute their products to kirana stores. The company operates in 12 cities and states that it is profitable from an operational standpoint.

Ripplr had previously secured $12 million in a funding round that included both equity and debt from Stride Ventures and Japanese firm Sojitz Corporation in December 2021. Santosh Dabke, co-founder of Ripplr, disclosed that the company generated revenue of approximately Rs. 900 crore in FY23. Although Ripplr is also engaged in sector-agnostic logistics, Dabke stated that “around 90% of the company’s revenue is derived from its distribution business”.

Ripplr’s innovative technology employs AI-based predictions and decisions, real-time inventory tracking, efficient loading and routing decisions, and purchasing patterns to help manage demand and inventory for both brands and retailers. The company has raised a total of $56 million from numerous investors and operates a distribution network with 24 warehouses located in Bengaluru, Hyderabad, Chennai, Delhi-NCR, Mumbai, Pune, and other tier-2 cities, serving more than 80,000 retailers. Some of the FMCG brands that Ripplr collaborates with include HUL, Nestle, ITC, Britannia, Dabur, Godrej, Colgate Reckitt Benckiser, Mondelez, and Nivea.

According to VS Kannan, partner and cofounder at Fireside Ventures, “there is an increasing emphasis on offline expansion that we observe with D2C brands once they have established a robust consumer base. Ripplr’s plug-n-play model is well-suited for such D2C brands.” Ripplr operates in a highly competitive market, facing competition from various players including Udaan (backed by Lightspeed Venture Partners), Reliance JioMart Partners, SoftBank-backed Elastic Run, Shopkirana, and ApnaKlub (backed by Tiger Global), among others.

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