SuperK, which runs retail supermarkets in tier 3 towns and beyond, has raised $6 million (Rs 50 crore) in a funding round led by Blume Ventures, according to ETtech report.
Investors like Silver Needle Ventures, Veltis Capital and Atrium Angels, among others, participated in the round. The firm did not disclose the valuation at which the funding happened. With this round, the firm has raised about Rs 85 crore so far, cofounder Neeraj Menta told ET in an interaction.
The funds will be used to strengthen the company’s tech capabilities and physical infrastructure like warehouses, among other things, Menta said without giving details.
SuperK, which started operating its first store in January 2020, runs about 125 stores in 80 towns across Telangana through a franchise model. The firm focuses on small towns that have a population size of between 20,000 and five lakhs.
“We saw that every time a quality retailer, like an Apollo medicine store, opened up in a small town, it would significantly improve the quality of service and even force local stores to up their game. But you cannot just copy and paste the retail model that is prevalent in metros or tier 1 and 2 towns, you have to build the system ground-up for tier 3 and beyond, and that also gives us a natural moat,” Menta said.
The company sells a variety of staples and fast-moving consumer goods (FMCG) in its stores, but does not sell fruits and vegetables. Roughly half of its sales are food, while the other half is non-food. In the food category, about half of sales happen through private-label brands, Menta said.
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