SuperK Secures $6 Million in Series A Funding to Bolster Small-Town Retail Presence

Preeti Bali / 10:24 am / March 27, 2024

SuperK, a franchised retail chain catering to India’s small towns, has secured $6 million in a Series A funding round. This investment, led by prominent venture capital firm Blume Ventures, will empower SuperK to accelerate its growth trajectory. Additional investors participating in the round include Silver Needle Ventures, Veltis Capital, Atrium Angels, and a consortium of angel investors and syndicates.

Funding Fuels Strategic Investments

The newly acquired capital will be strategically allocated to fuel several key initiatives.SuperK plans to invest in bolstering its technological foundation to enhance operational efficiency and elevate the customer experience. The company intends to expand its workforce with qualified personnel to support its ambitious growth plans.Efforts will focus on developing and scaling a platform that seamlessly connects digital-native brands with SuperK’s extensive customer base.

First Funding Round of 2024

This Series A round signifies SuperK’s first fundraising effort in 2024. A regulatory filing with the Registrar of Companies reveals that the company issued 4,521 Series A Compulsory Convertible Preference Shares (CCPS) at an issue price of Rs 68,569 each, translating to approximately Rs 31 crore ($3.7 million).

Investor Breakdown and Post-Money Valuation

Blume Ventures spearheaded the investment round, contributing Rs 21.65 crore. Other participants included VSS Investment Fund, Veltis Capital, Stargazer Fund, CoralBay Ventures, Silver Needle Ventures, HOF Profectus, IA Growth Opportunities, and Abhishek Goyal. Following this investment, Blume Ventures holds a 10.1% stake in SuperK, while Silver Needle Ventures and Veltis Capital will hold approximately 1.26% and 1.06% ownership stakes, respectively. Startup data platform TheKredible estimates SuperK’s post-money valuation at around Rs 160 crore ($20 million). This represents a 25% decrease from the company’s valuation during its previous fundraising round.

Company Background and Growth

Established in 2019, SuperK operates a unique franchise model within the grocery retail sector, focusing on asset-light operations. The company boasts a network of over 80 stores across tier III, IV, and V towns in Andhra Pradesh, serving over 5 lakh families in the past four years. SuperK experienced significant financial growth in the last fiscal year, with revenue tripling to Rs 59 crore from Rs 19.2 crore in FY22. However, the company also reported losses of Rs 23.5 crore during the same period.

Looking Ahead: Building a Dominant Presence in Underserved Markets

This fresh capital injection positions SuperK for a promising future. With a focus on technological advancements, strategic partnerships, and talent acquisition, SuperK is poised to solidify its position as a leading grocery retailer in India’s underserved small-town markets.

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