eGrocery retailer,
Satvacart today announced the closure of its Angel Round 3 with Serial Entrepreneur & Angel Investor Nimit Panigrahi joining the current round. The firm had earlier announced the participation of ad guru Abhijit Awasthi, SP Vijay of Tarento Technologies and Karan Chellani at the beginning of Angel round3.
Announcing the development, Rahul Hari, Founder and CEO, Satvacart said "The closure of Angel Round 3 reinforces the validity of our business model and the confidence that we enjoy among investors. With this funding, we plan to enhance our technology and data analytics capabilities to make the business ready for scale up and become self-sustainable, before replicating the business across other geographies. We will be hiring talent across Technology, Data Analytics and Retail for our future expansion and are open to aqui-hiring as well as acquisitions."
Performance highlights:* Improved average revenue per user (on a monthly basis) by 100% over the past 8 months.
* Increased wallet penetration in active households to 25% currently vs 13% in January 2016. Planning to increase it further to over 70% in the coming months.
* With almost zero discounting, increased the number of transactions per active household per month for on-demand grocery to 2.71 now vs 1.9 in January 2016.
Nimit Panigrahi is a serial investor and entrepreneur. An alumnus of Cass Business School (London), he has extensive experience in business strategy, financial modeling, risk consultancy & mitigation and brand building. After his crucial stint with the corporate world, Nimit co-founded an Insurance broking house and a boutique HR Consultancy. Post their success Nimit entered into real estate as a developer in Eastern India. He has further ventured into building an exclusive and diversified portfolio of technology ventures which include – Thumbbell – a Health & fitness marketplace; Lolchef – a Food delivery app; and FiFi - an artificial intelligent fitness app.
Commenting on his decision to invest in eGrocery sector when investors appear to be shunning it, Nimit said, "I am happy to collaborate with Satvacart on its growth journey. The team has been doing a tremendous job by focusing on single geography and cracking the viability part before cracking the scalability part."
“I have studied the business models of some of the globally successful eGrocery players such as Ocado and Fresh Direct. The problem is not in the sector but with the business model. I see a huge opportunity in this sector primarily because the entry barriers have now been set. Given the recent shutdowns, it will be extremely difficult for any new player to enter into eGrocery or secure funding. Any future scale-up will happen among the existing players only, who have a sound and sustainable business model. And this is where the value creation opportunity lies." added Nimit.
Tapesh Singhi, Partner, Palaash Ventures said, “We are extremely happy with the performance Satvacart has given over the past two years. With right decisions, the company has not only managed to survive in a tough market with heavily funded players, most of whom have shut shops now, but has also attained unit level profitability and cracked the business model."
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