Jumbotail Raises Rs 151 Crore Led by Artal Asia | CNBC TV18

Summary

JumboTail, a B2B marketplace for food and grocery, has raised ₹151 crore in equity, led by Aral Asia, to scale its operations and enhance services for brands targeting mass-market consumers through its extensive kirana network. CEO Ashish Chhaya highlighted that the company has significantly reduced operational burn and increased revenues. With a focus on leveraging AI for personalized services and connecting retailers to credit options, JumboTail aims to achieve profitability across its cities by year-end. The company is poised for substantial growth in India's grocery market, aiming to transform traditional retail dynamics.

Takeaways

• 💰 Jumbotail has raised ₹151 crore in equity capital, led by Aral Asia, bringing total equity raised to over ₹140 million.
• 📈 The funds will be used to expand Jumbotail's presence in cities and achieve operational profitability.
• 📉 Over the past year, Jumbotail has reduced operational burn by 80% and increased net revenues by 50%.
• 🏪 Jumbotail has built a network of over 150,000 kirana stores across urban areas in India.
• 🤖 The company utilizes AI to personalize services for kirana stores and enhance product discovery.
• 🚚 Jumbotail is focused on creating an efficient supply chain, enabling tens of thousands of daily deliveries.
• 🌐 The goal is to transform kirana stores into omni-channel convenience grocery stores.
• 🔍 Jumbotail aims for profitability in every city it operates in by the end of the year.
• 📊 CEO Ashish Chona projected sales to exceed ₹2,600 crores for the current financial year.
• 📅 Jumbotail is committed to scaling operations while focusing on improved profitability and market share.

Q & A

What is Jumbotail, and what type of funding did it recently receive?

Jumbotail is a B2B marketplace and new retail platform focused on food and grocery. It recently raised 151 crore rupees in equity funding led by Aral Asia.

How does Jumbotail plan to use the funds raised in this latest round?

The funds will be used to scale its suite of go-to-market products and services for emerging brands, aiming to help them reach mass market consumers through its kirana store network.

What operational improvements has Jumbotail achieved recently?

Jumbotail has reduced its operational burn by 80% and grown net revenues by 50% since its last funding round, achieving nearly four times growth in total revenues.

How many kirana stores are currently part of Jumbotail's network?

Jumbotail currently has over 150,000 kirana stores in its network, spread across various urban areas in India.

What is Jumbotail's goal regarding profitability in its operational cities?

Jumbotail aims to achieve operational profitability in every city where it operates by the end of the year.

How does Jumbotail utilize technology to enhance its operations?

Jumbotail uses AI to personalize experiences for kirana stores and optimize its supply chain, enabling connections to non-banking financial companies (NBFCs) for credit access.

What challenges does Jumbotail face from other grocery delivery services?

Jumbotail competes with various grocery apps that offer quick delivery times, often within minutes or a day, which challenges its market share.

What is the expected sales target for Jumbotail in the current financial year?

Jumbotail expects to achieve over 2,500 crores in sales on its platform in the current financial year.

What is the company's strategy for achieving growth and profitability?

Jumbotail focuses on deepening its market presence in existing cities and believes that growth will lead to improved profitability.

What is the CEO's confidence regarding Jumbotail's future in the ecosystem?

The CEO is confident that Jumbotail will be one of the first companies in its ecosystem to achieve full profitability and cash flow positivity due to its scalable model and operational efficiencies.