FMCG-focused startup Dropshop has raised INR 9.3 crore in a Pre-Series A round led by Inflection Point Ventures. Existing investors Axilor Ventures and The Chennai Angels also participated in the round with 42.vc joining the round via AngelList. Funds raised will be used for strengthening the product and scaling up operations for handling more FMCG brands and enter new markets like Chennai and Hyderabad.
Dropshop is a full-stack platform for FMCG companies to digitise their last-mile distribution – sales, logistics and credit to retailers. With this, the brands get real-time visibility into demand and supply gaps, fulfilment ratio, and drive targeted growth.
“This round of funding will allow us to build over our existing products to grow our brand portfolio as well as retailer base. 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,” said Udit Dhawan, Founder & CEO, Dropshop.
Currently, Dropshop Network reaches 10,000+ retailers in Bangalore. It works with 5 of the top 10 FMCG companies in India including ITC, Marico, Reckitt Benckiser, and Godrej Consumer Products, and 40+ small and localized brands said the company. Dropshop clocks over 15,000 orders per month with Rs 4 crore GMV per month.
Mitesh Shah, Co-Founder, Inflection Point Ventures says, “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 the house. Given the geography of India, it is not viable business-wise to create an expensive distribution network across the country. This is the completely untapped opportunity that Dropshop has identified and they are working aggressively to scale up. This is a newly emerging area where we expect more startups to enter making it an attractive sector to invest in.”
