FMCG distribution platform Dropshop has raised Rs 9.3 Cr in Inflection Point Ventures led pre-Series A funding round. The funding round also saw participation from existing investors The Chennai Angels and Axilor Ventures, along with 42.vc.
The fresh funds raised by the platform will be used to strengthen the product and to scale up the operations in order to handle more FMCG brands and to expand into new markets.
Speaking on the investment, Udit Dhawan, Founder & CEO, Dropshop, commented, “As one of the largest sectors in India, FMCG is still run over the backs of thousands of traditional distributors. We have been working with several large and small FMCG companies in streamlining their last mile distribution with technology for over a year now, and enabling them to reach their market potential. We believe that the time is ripe for FMCG distribution to consolidate and evolve into retail execution where all stakeholders benefit from data and technology. This round of funding will allow us to build over our existing products to grow our brand portfolio as well as retailer base.”
Udit said, “Our immediate focus is to strengthen our team, product and processes for the next phase of growth, and we are delighted for the continued support of our existing investors and excited to have IP Ventures and 42.vc joining us on this journey. “
Mitesh Shah, Co-Founder of Inflection Point Ventures added, “FMCG companies are often faced with a critical issue of increasing margins without burdening their customers. Traditionally, they have adopted the approach of building distribution and last-mile network in-house. Given the geography of India, it is not viable business wise to create an expensive distribution network across the country. This is a completely untapped opportunity that Dropshop has identified and they are working aggressively to scale up. This is a new emerging area where we expect more startups to enter making it an attractive sector to invest in.”
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.