RainCan, a Pune-based startup which provides subscription service for the delivery of fresh and perishable items, has raised ₹1.75 crore in its pre-series A funding round.
The funding comes from Prabodh Agarwal, Group CFO, IIFL Holdings Limited and existing investor Dr. Aniruddha Malpani. He had invested around ₹1 crore in April this year.
The newly raised money will be used to expand its delivery operation centers and set-up start of the art logistics platform to facilitate deliveries at the lowest possible cost.
Commenting on the newly raised funding round, Abhijeet Kumar, Co-Founder, RainCan, said,
RainCan delights customers by helping them buy small and buy fresh, so that family members can start their day with a healthy breakfast first thing in the morning. We deliver convenience cost effectively. We help busy Women come out of the fear of missing an item for breakfast and lunch by delivering milk and other fresh produce early morning. They can buy a dozen eggs, a tender coconut or as little as a few lemons.
Prabodh Agarwal, who invested in the current funding round, said,
Selling fresh produce online is still in its nascent stage, and the service is expected to grow exponentially in the coming years, as more customers discover its convenience. RainCan has built a business model with good unit economics. With proper capital backing, it has the potential to satisfy many more customers.
RainCan was founded in June this year by Munendra Singh and Abhijeet Kumar. It is a subscription-based service provider which largly deals in dairy products, meat, bakery, fruits and vegetables.
The startup inspired from existing milk subscription and delivery supply chain. They deliver ultra-fast moving products with low shelf life to the customer’s doorstep. The deliveries starts at 5 am through an in-house delivery team of 60.
Prior to this funding round, the startup had raised its seed round of funding in April 2015 worth around ₹64-65 lakhs from Ajeet Khurana and a few others.
RainCan claims to have been operationally profitable since September last year. For this, majority of the credit goes to the company’s use of technology and optimization of its logistics team. Due to this, deliveries are concentrated in nature help keep cost of delivery to just under ₹2.
The company is also in talks with a few venture capital firms to raise another ₹10 crore funding to meet its target of achieving 50,000 subscriber base and ₹100 crore annual revenue.