MUMBAI : Distribution and logistics startup Ripplr has raised $12 Mn in a pre-Series B funding round with a mix of debt and equity funding.
Sojitz Corporation and Stride Ventures participated in the round along with existing investors 3one4 Capital, Zephyr Peacock India Growth Fund and angel investors Vivek Gupta, Abhay Hanjura (Licious), Aniket Jain and Ashish Aggarwal (Solution Infini).
The startup had closed its Series A funding round at $3 Mn in January this year.
Founded in 2019 by Abhishek Nehru and Santosh Dabke, Ripplr offers a plug-and-play integrated distribution network to brands. It is an AI-driven distribution startup that offers distribution as a service to brands.
It is building digital and offline end-to-end capabilities aimed at enabling brands to test their products in target markets and scaling distribution from a small number of large retail stores to thousands of small stores across geographies.
Ripplr currently has a presence in six cities with more than 30k retailers and has partnered with brands including HUL, Britannia, ITC, Reckitt, Godrej etc. It claims to have grown 7x over the last year and is targeting annual recurring revenue of INR 1,000 Cr starting next year.
“With our new model for the FMCG distribution and retail sector, we are in the process of disrupting traditional channels. Our AI/ML-based distribution platform bridges the gap between brands and unorganised retail, solving for both distribution and information asymmetry,” said Abhishek Nehru, cofounder of Ripplr.
The Indian logistics market is estimated to be worth $215 Bn and is growing at a CAGR of 10.5% with only 10-15% of the market being captured by organised players. The online vertical of the logistics market is projected to be worth between $20 Bn and $30 Bn by 2025.
Ripplr plans to deploy the freshly infused capital towards product development, attracting new talent and expanding to new markets.
“Ripplr is one of the first companies to build a digital distribution platform in the market and gaining traction from leading Indian manufacturers. From now on, we will try to contribute to solving the issues which consumer goods/food manufactures are facing in the Indian market by providing our knowledge gained through overseas wholesale business operations,” said Sari Miida, general manager of the retail department in the retail and consumer service division of Sojitz Corporation.
Last month, Indian logistics unicorn Delhivery had filed its draft red herring prospectus (DRHP) with market regulator SEBI ahead of its initial public offering (IPO).