Rapidly growing to reach 200,000 kiranas in FY21 with innovative business models
Jumbotail, India’s leading B2B marketplace and New Retail platform, today announced it’s services in multiple new geographies in India as part of its expansion plan. After successfully serving 30,000+ kiranas across Bengaluru region, the company has expanded to 13 cities across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Punjab, Chandigarh, and nearly 50+ Tier III/IV towns in Uttar Pradesh, Uttarakhand, Haryana, Bihar, Jharkhand, Punjab, Himachal Pradesh, Jammu, and Ladakh. Jumbotail now has a national footprint with presence across key consumption markets, and offers a unique bouquet of Go-To-Market services for FMCG brands.
Jumbotail is investing in building world class supply chain and logistics infrastructure for B2B ecommerce grocery in Chennai, Coimbatore, Salem, Vijayawada, Visakhapatnam, Hubli, Dharwad, Belgaum, Hyderabad, Mysore, Bengaluru, Chandigarh & Punjab. Jumbotail is also extending fintech services for SME Lending to kirana stores and sellers in these geographies. To fuel it’s scaling ambitions, the company is hiring across all locations, roles and functions in technology, product, design, decision science, category management, marketing, supply chain planning and design, and HR and people experience.
Ashish Jhina, COO & Co-founder of Jumbotail commented on the expansion saying, “We are building the future of grocery retail in India, bringing together brands and channel partners via our platform, using a highly scalable and low capex business model to create a pan-India distribution reach to millions of kirana stores. We are seeing a huge line up of brands to onboard on our platform. We are rapidly expanding to reach 200,000 kirana outlets in 100+ Tier III and Tier IV towns”.
He added, “We have nearly doubled our FMCG business over the past 4-5 months. Covid has changed retailer behaviours permanently and Jumbotail’s technology powered model is scaling at an unprecedented pace. We are seeing 50-100% growth in the number of retailers buying categories like Biscuits & Snacks, Health Drinks, Tea & Coffee, Soaps and Home Care on the Jumbotail platform indicating a higher consumption from local kirana shops during lockdowns. The superfast adoption of ecommerce by kirana retailers all across the country is a testament to the strong network effects of our business and the scalability of our supply chains.”
Aman Agrawal, President, Jumbotail Logistics said, “Jumbotail’s lean, efficient and technology driven distribution platform and services is a win-win proposition for brands, channel partners and retailers. During the last quarter, demand for key products continued to skyrocket due to lockdown, and Jumbotail Logistics delivered over 45 million units of FMCG products during the April to June quarter, with a market leading 75% Delivery NPS in spite of 50% less delivery time windows due to covid lockdown restrictions on retail shop operating hours. We are rapidly scaling across multiple geographies and expanding the footprint of our logistics and fulfilment center network across the country to support marketplace expansion. We are also investing heavily in technology, product, design, and decision science to scale in a cost efficient manner. By leveraging Jumbotail’s reach, and distribution services, our partner brands are able to focus on manufacturing quality products and on driving consumer demand, leaving market access and efficient distribution to Jumbotail.”
According to RedSeer Consulting, India’s retail B2B market will grow at a CAGR of 10% to reach $1.3 TN by FY25. eB2B specifically is expected to grow the fastest, at a CAGR of >80%, driven by its capability to connect everyone in the whole retail supply chain. A traditional retailer is able to jump over a lot of barriers as e-B2B does the tough task for them by connecting to the right set of people to fulfil the requirements of a retailer.
Jumbotail is India’s leading New Retail platform and online B2B marketplace for food & grocery that connects 50,000+ mom & pop kirana grocery stores with brands, producers, and farmers. Jumbotail was co-founded by Stanford MBA classmates S.Karthik Venkateswaran and Ashish Jhina. Jumbotail Logistics is an inhouse, end to end, tech powered full stack supply chain network with fulfilment centers, distribution centers, enabling last mile storefront delivery and payments collections from its customers. Jumbotail’s fintech platform facilitates working capital credit in a cost-effective and scalable manner from lenders for its customers and sellers using its proprietary algorithms & integrated credit products.
Jumbotail has raised a total of $54mn in equity from prominent investors including Heron Rock, VII Ventures, Nutresa, Veronorte, Nexus Venture Partners, Kalaari Capital, Jumbo Fund, Arkam Ventures, Reaction Fund, and $4.8M in Venture Debt from Alteria Capital.