Bengaluru-based online milk and grocery delivery startup Doodhwala is raising up around ₹85 crore ($12 million) in a series A funding round. The startup has approached both new and existing investors for the latest fundraising, as reported by VCCircle.
Mumbai-based impact investor Omnivore Ventures, which invests in agritech domain, will be participating in the latest round. It first invested in the milk delivery startup earlier this year.
The talks are also going on with a bunch of investors that are based in America, China, and Japan.
“We will be closing the round in January next year as the term sheets are getting finalised and the talks are at a fairly advanced stage,” Akbari said. “We are looking at a post-money valuation of $40 million.”
The funds raised will be used be used to expand business in the existing markets including Bengaluru, Pune, and Hyderabad, penetrating deeper into the region.
Doodhwala, owned and operated by Banger Tech, was founded by Aakash Agarwal and Ebrahim Akbari in 2015. The startup offers a subscription-based online milk and grocery delivery platform. It offers a wide variety of products dairy, grocery and other products like eggs, fruits, vegetables, and staples.
Making four lakh deliveries in a month, the startup delivers fresh products to its customers right at their doorsteps, early in the morning.
According to the startup, growing at a rate of 15% month-on-month, Milk makes about 20% of its overall grocery segment. Doodhwala is looking to grow at 25% month-on-month every year. In the coming 12 to 18 months, it will be doing up to 6,000 deliveries across all its cities.
Other hyperlocal delivery startups catering to the online milk and grocery segment in India include Milkbasket and DailyNinja, among others. Apart from them established grocery startups BigBasket and Grofers also compete with Doodhwala.
Recently, there has been a lot of interest among other major e-commerce players to enter the growing online grocery domain. Both Amazon and Flipkart are aggressively looking to enter the segment, in order to expand their market share.
In August 2018, it was reported that Flipkart had launched its online grocery store called Flipkart Supermart.
Last month, BigBasket acquired hyperlocal delivery startup RainCan, to foray into the subscription-based hyperlocal delivery segment.