1K Kirana has raised $25 million for its hyperlocal shopping and distribution platform.

Indian startup 1K Kirana, which operates a hyperlocal shopping app and retail distribution network of the same name, has raised $25 million in a new funding round to expand the reach of its brand and neighborhood stores among consumers.

Series B financing of the 3-year-old startup was led by Alpha Wave Global, Info Edge Ventures and Kae Capital. Many angel investors, including Zetwerk founder and CEO Amrit Acharya, were also involved in what the startup said was the first tranche of a large-scale funding round.

Neighborhood shops are located in tens of thousands of cities, towns and villages in India. They have survived and prospered despite billions of large retail investments in the country. However, they are having a hard time getting stock at a good price in bulk.

1K Kirana We try to solve it with a multi-pronged approach. Startups serve as distribution networks for these stores, helping digital marketing to reach more consumers. 1K Kirana also runs an app for consumers, which can be used to search for, order and pay for purchases.

“We control their entire supply chain. We supply them, we market them, and we keep customers coming to our stores. These stores operate as franchise partners and you make money through commissions instead of playing through margins,” explained Kumar Sangeetesh, co-founder of 1K Kirana, in an interview with TechCrunch.

Consumers can have their order delivered to their home or pick up at a nearby store. If you order items that are not in store, 1K Kirana will ship them to your store.

Most of the items sold in your local store fall into the FMCG category. The problem with operating in this category of world is that store owners make single-digit returns on moving these items. The industry agrees that these stores move most of their inventory, so it’s an issue worth solving. So, reaching customers on behalf of your store and customers is critical to everyone’s success.

What 1K Kirana is trying to do at a fundamental level is to significantly increase the number of items these stores sell, allowing them to scale. At the same time, 1K Kirana serves consumers, giving them access to a larger catalog of items, more selections and discounts across categories.

1K Kirana is a consumer, not a kirana-tech startup, Sangeetesh added: “In our case, we aggregate the supply and demand in the store and go to the manufacturer to lower costs and pass on the cost advantage to the consumer.” play.

“The impact that 1K has made in a very short period of time in the lives of both consumers and franchise partners is extremely difficult to achieve. “The 1K Mall app has already enabled hundreds of thousands of non-urban Indians to shop online for the first time,” Kitty Agarwal, partner at Info Edge Ventures, said in a statement.

“We believe that the 1K team is building an iconic company that is changing the way non-urban India shop for everyday needs by broadening the choices with higher quality, affordable options. The founding team excels in execution and we are excited to strengthen our partnership with them.”

1K Kirana says it has served over 1 million customers in over 25 locations in Delhi, Haryana, Rajasthan and Uttar Pradesh. He said he plans to deploy new funds to hire more technical talent to expand 1K Kirana’s reach to more than 100 districts.

“Sangeetesh, Abhishek and Sachin have built a business that combines strong growth with an attractive unit economy. Alpha Wave Global’s founder and partner, Navroz D. Udwadia, said in a statement, “We are excited to be working with consumers who are not served in India’s over $600 billion grocery market by providing them with a modern retail experience.” said.

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