Frendy, a tech-enabled small-format grocery chain has raised Rs 2 crore in working capital credit from UC Inclusive Credit (UCIC), the non-banking financial company arm of Unitus Capital. This funding is earmarked to support central inventory needs for the chain’s network of marts and micro-kiranas in tier-3 and smaller towns across Gujarat, according to a company statement.
Founded in 2019 and based in Ahmedabad, the Frendy was established by Sameer Gandotra, an MBA from the Wharton School; Harshad Joshi, a graduate of ISB and IRMA with experience at Walmart and Metro Cash & Carry; and Gowrav Vishwakarma, a serial tech entrepreneur. The business aims to scale its operations fourfold, with plans to raise equity and expand credit lines.
Sameer Gandotra, Founder and CEO, said: “As we aim to scale our business 4x, we intend to raise equity and expand our credit lines. Having a lending partner in UCIC adds additional operational and financial discipline, which is always beneficial for early-stage startups.”
Highlighting the company’s operational efficiency, he said: “We have achieved close to 40 annual turns of inventory at our Central Warehouse using our proprietary tech-enabled Auto Replenishment System (ARS) to restock our marts and serve the micro-kiranas.”
The chain is developing a network of modern neighbourhood grocery mini-marts designed to improve daily shopping for consumers in small towns and villages across India. The marts are digitally connected to clusters of micro-kiranas (mom-and-pop stores) and their end customers, creating a last-mile digital commerce bridge for rural consumers.
Currently, the company operates 25 marts and over 2,000 micro-kiranas in rural Gujarat, with plans to expand to 100 marts and 3,000 micro-kiranas within the next year. The business reported a revenue of Rs 82 crore for FY23 and aims to double its sales as it expands its geographical footprint.
The company said its hub-and-spoke model allows it to generate retail margins at its marts while maintaining a tech-enabled B2B layer for the smooth operation of the micro-kiranas. Additionally, the chain has developed a 300 SKU-strong private label portfolio and recently introduced fast food and beverages, bakery items, and children’s entertainment at its marts, which have shown positive results.
“UCIC provides loans to companies led by strong founders and supported by reputed investors, addressing large market needs through innovative products and services,” said Abhijit Ray, Managing Director of UCIC.
He added, “Frendy, promoted by visionary and highly experienced founders, has been catering to the needs of micro and small entrepreneurial ventures in tier-2 and tier-3 cities of India, and UCIC is proud to partner with its team.”
