B2B Marketplace Jumbotail Secures Funding to Empower Kirana Stores

Jumbotail, a Bangalore-based leader in B2B marketplaces and retail solutions, has secured Rs 151 crore (roughly $18.2 million) in a Series C3 equity funding round. Artal Asia, a Singaporean venture capital firm, spearheaded the investment with participation from several other firms, including Heron Rock, Sabre Investment, Arkham Ventures, Jarvis Reserve Fund, Reaction Global, and VII Ventures.

According to a company statement, the fresh capital will be used to bolster Jumbotail’s suite of go-to-market products. This will allow them to empower new and emerging brands by connecting them with a wider audience through Jumbotail’s extensive network of local convenience stores (kirana stores) across India.

Jumbotail: Since 2015, Providing Integrated Solutions to Empower Small Businesses

Jumbotail, a company founded in 2015 by S Karthik Venkateswaran and Ashish Jhina, provides small and medium-sized enterprises with an extensive range of services. This includes a robust B2B marketplace platform, advanced warehousing solutions, and a last-mile delivery network. Additionally, they provide kirana stores with next-day deliveries and a fintech platform offering payment processing, credit solutions, and other financial services.

Jumbotail is currently focusing on developing cutting-edge artificial intelligence (AI) technologies. These technologies aim to increase customer spending across various categories, including fast-moving consumer goods (FMCG), staples, and kirana supplies.

Jumbotail’s Digital Revolution: Independent B2B Orders Drive Kirana Store Sales Across the Country

The company boasts an impressive 60% penetration rate within the kirana stores operating in the cities they serve. They also hold the highest average customer spending and purchase frequency among small and medium kirana stores in the industry. Remarkably, nearly all of Jumbotail’s sales come from unassisted digital orders placed directly by kirana stores nationwide through their B2B mobile app.

Jumbotail has secured a total of $143 million in equity funding to date. This includes investments from prominent players like Artal, Heron Rock, Nexus Ventures, Kalaari Capital, Jumbo Fund, and Arkam Ventures. Additionally, they have secured approximately $14 million in venture debt from leading firms Alteria Capital and Innoven Capital.

“We are thrilled to see Jumbotail’s commitment to sustainable, large-scale growth with a focus on profitability and efficient use of capital,” said Benjamin Felt, Board Member of Jumbotail and Managing Director of Invus, the global advisor for Artal. “Since our underlying interest in Jumbotail in 2021, they have reliably shown their special abilities and administration in the advanced change of the kirana environment.”

Despite a reported loss of Rs 264 crore in fiscal year 2023, nearly double the previous year’s Rs 124.7 crore, Jumbotail’s revenue from operations has seen a significant surge. Revenue reached Rs 819 crore, reflecting a substantial 117% increase compared to Rs 377 crore in the previous year.