- 100% growth in Gross Merchandise Value (GMV)
- 110% growth in Net Revenues
- Achieves profitability in one third of the business
Bengaluru, May 25, 2023: Jumbotail, India's leading online B2B marketplace and New Retail platform for food & grocery serving over 250,000 kirana stores across 50+ major cities and towns covering 3600 pin codes, today announced results for the Fiscal Year 2023. The startup marked a 100% YoY increase in Gross Merchandise Value (GMV) (net of cancellations and returns), reaching ₹ 2262 crore in FY23, up from ₹ 1128 crore in FY22. This growth was driven by deeper penetration into retailer wallet share and a successful national expansion strategy. Jumbotail has ended the year strongly with key regions, constituting one third of its business, now operating profitably.
Ashish Jhina, Co-founder and COO Jumbotail said, "We are very satisfied with our performance in FY23. With the enthusiastic response from over 2000+ national and regional brands and manufacturers listing on our platform, and with our customers' trust in our platform and service, we have broadened our reach and deepened our presence across the nation. Moreover, our organic growth, with 100% of orders coming via the Jumbotail app without any salesforce taking orders, and with over 3x higher average buying frequency per kirana per month in our platform compared to other platforms, highlights our focus on driving profitability via technology leadership and a successful digital-first approach."
Jumbotail's plan for FY24 includes further doubling its net operating revenues, growing its customer base by ~65% to reach 400,000 kirana stores, and increasing the number of J24 stores to 300 stores (serving 1 million consumers for their daily grocery needs). With investments in AI-driven products for growth and cost optimization, the company aims to have all its cities operating profitably in the next 12 months.
The company's focus on value creation through technology-driven scale has led to significant efficiencies, with the platform achieving in-stock availability of ~95% and Jumbotail Logistics delivering an order fill rate of over 97%. This performance is substantially above industry standards of ~65%, proving Jumbotail's effectiveness in meeting the needs of its Kirana customers. Jumbotail Logistics operates over 1.2M Sqft of fulfilment centers and distribution centers across 23 major cities, serving over 50+ cities and towns within 150km radius of each fulfilment center. In FY23 Jumbotail Logistics shipped 1.1 billion units of products, up from 0.49 billion in the previous fiscal year, representing a surge of over 125% in the units shipped. It is notable that Jumbotail does not enforce a min order value and delivers even single units to small and medium size kirana stores who buy in smaller quantities more frequently. Jumbotail also efficiently handled 15 million orders in FY23, compared to 6 million in FY22, and ensured that more than 75% of orders were delivered within the next day.
Jumbotail’s cost structures continued to remain efficient as higher sales were generated from deeper wallet penetration per customer, resulting in higher frequency of purchase, and higher demand density in the clusters. FMCG products in Packaged Foods, Biscuits, Snacks, & Confectionery, Beverages, Tea, Coffee, Personal care, Home Care constituted nearly 40% of sales on the platform, resulting in margin expansion.
Ashish Jhina added “As we look forward to FY24, we intend to continue our strong trajectory of driving sustainable growth and profitability, thereby further consolidating our leadership in the market. We plan to hire top talent in a wide range of functions across category management, product management, marketing, supply chain planning and design, tech, AI/ML, Decision Science, and UX Design to drive our FY24 goals."
An estimated 12 million kirana stores in India control more than 95% of the country’s $500B+ food and grocery market. Kiranas’ have proven to be lifeline for Indian consumers, and the economic engine for the country. Technology, supply chain, and fintech solutions from startups like Jumbotail are poised to transform the kirana store ecosystem at an unprecedented pace and scale over the next few years and empower the kirana retailers to help them meet the emerging needs of the next generation consumer.
Jumbotail is India’s leading online B2B marketplace and New Retail platform, serving 250,000+ kirana stores across 50+ cities via its full stack B2B marketplace platform, its inhouse tech driven warehousing and last-mile delivery supply chain network that provides next-day storefront deliveries to Kirana stores, and its fintech platform for payment, credit solutions and financial services to kirana store owners.
Jumbotail’s New Retail platform provides complete business-in-the-box solutions including but not limited to consumer branding in store technology, consumer demand generation, integrated supply chain, and working capital support, to kirana entrepreneurs to transform their stores to J24 branded omni-channel modern convenience stores. J24 stores are targeted to serve the daily grocery needs of urban middle class young families.
Jumbotail has raised a total of $125mn in equity from prominent investors including Invus, Heron Rock, VII Ventures, Nutresa, Veronorte, Nexus Ventures, Kalaari Capital, Jumbo Fund, Arkam Ventures, and ~$23M in Venture Debt from leading venture debt firms Alteria Capital and Innoven Capital.
Jumbotail was founded by S.Karthik Venkateswaran, and Ashish Jhina, Stanford MBA classmates. Karthik served with the Indian army in hard combat and is a marketplaces tech/product veteran from eBay-US and Flipkart. Ashish Jhina is a 3rd generation apple farmer, and a former consultant with BCG, with deep experience in agricultural production and supply chains.
*Disclamier: "The pages slugged ‘Press Release’ are equivalent to advertisements and are not written and produced by Success Insights India Media journalists/Editorial." We do not hold any copyrights towards the content or image. Image source: Newswire