Until a few months ago, grocery delivery startups were a hot favorite of investors. That changed due to failure of most startups in the sector. Investors who were eagerly investing in grocery startups, restrained themselves from doing so. However, urDoorstep has managed to secure Rs. 10 crore in a bridge round.
The Bangalore-based online grocery delivery startup has raised about Rs 10 crore. Out of those 10 crore, Rs 5 crore comes from a group of high-net worth individuals. Another Rs 5 crore comes as a debt financing from Lakshi Vilas Bank.
This new funding round for the company comes after it raised about Rs 2 crore a couple of months ago. In July this year, the startup raised funding from CP Murali, which raised seed funding from Rajeev Chandrashekhar-backed Jupiter Capital.
With the new cash coming to the company, it is looking forward to expand its business to other locations. Dinesh Malpani, founder of urDoorstep, said,
With the current round, we will be expanding to new pin codes in the city. We are eyeing Ebitda breakeven by first quarter of 2017-18. We are doing this by managing cost of customer acquisition and logistics cost.
urDoorstep sources produce from 9,000 farmers across India, depending on seasonal variations, and is only serving Bengaluru at present. The orders are served through a 3,000-square-feet fulfilment centre which dispatches the orders to smaller spokes across the city for delivery.
As it sources directly from farmers, the company claims to operate at a 16-17% margin. As of July, the startup had five fulfilment centres and is planning of nine such centres for the entire Bangalore operations.
One of the major competitor for the startup in this space is Big Basket, which claims to be fulfilling nearly 47,000 orders per day across several cities.