Jumbotail Raises $ 85 Million From Invus Affiliate, Others; Kalaari partially comes out


Business-to-business (B2B) e-commerce platform Jumbotail Technologies Pvt Ltd raised $ 85 million (approx. ??640 crore) as part of its Series C funding round led by Artal Asia Pte Ltd, a subsidiary of U.S. group Invus, the company said on Tuesday.

Ajax Capital, the family office of entrepreneur Ajay Gupta, also participated in the round. Ajay Gupta is the Managing Director of the fast growing consumer goods company (FMCG) Capital Foods Pvt Ltd.

This Series C funding round was a combination of primary and secondary investments, the company said. Nexus Venture Partners and Kalaari Capital partially left the company with the arrival of new investors, the company said in a statement.

The latest fundraiser brings the total capital raised by the company to $ 125 million, he added.

Based on data on VCCEdge, the data and research platform of VCircle, Kalaari Capital held a 12.97% stake in Jumbotail prior to the latest transaction, while Nexus Venture Partners held a 26.58% stake.

Jumbotail said it will use the funds to triple its engineering, product, design, data science, category management, marketing and finance teams. Jumbotail will also expand its main B2B marketplace to 100 cities and towns across India, and expand its “J24” store network, the company said.

The company will also invest in skills development initiatives for Kirana store owners and further improve its go-to-market services to support the FMCG brands, he added.

Jumbotail was founded in 2015 by S Karthik Venkateswaran and Ashish Jhina. Venkateswaran had served the Indian Army in fierce fighting and had previously worked with tech platforms like eBay and Flipkart. Jhina, meanwhile, was a consultant with the Boston Consulting Group (BCG) and has experience in agricultural production and supply chains.

“We almost quadrupled our scale in 2021 and we are looking to further accelerate our growth trajectory in the coming year. We will continue to invest aggressively to bring Jumbotail for food and grocery brands to the overwhelming majority of Indian consumers through our pan-Indian network of Kirana partners, ”said Jhina.

Jumbotail claims to have connected approximately 2,000 FMCG and basic food brands and sellers to nearly 150,000 Kirana stores in 38 cities and towns across India through its warehousing, logistics supply chain network and its B2B e-commerce platform. The company said its new retail platform allows Kirana stores to transform into omnichannel convenience stores under the J24 brand in 24 to 48 hours.

The platform offers kirana retailers a complete retail operating system suite to digitize in-store operations with point of sale (POS), inventory management, real-time data and merchandising insights, daily fulfillment products, a business-to-consumer (B2C) online store, and loyalty and digital marketing solutions to enable them to connect with their consumers.

According to Jumbotail, the size of the unorganized retail market, which has nearly 14 million Kirana stores, is over $ 500 billion.

Earlier this year, the company had raised ??35 crore from Alteria Capital as part of a venture capital debt cycle to expand operations across India.

In January, Jumbotail had raised $ 14.2 million in a round dubbed Serie B3 and prior to 2020, it had raised $ 11 million in a B2 round.

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