Ahmedabad-based Frendy, a small format grocery chain running micro kirana stores, on Tuesday said it has raised Rs 2 crore debt fund from UC Inclusive Credit (UCIC), NBFC arm of Unitus Capital. The company said it will deploy capital towards its central inventory for its network of 25 marts and 2,000 kirana stores in rural Gujarat.
Founded in 2019 Frendy is building a network of modern neighbourhood small grocery marts for customers in small towns and villages. The company said it aims to expand to 100 marts and 3,000 micro kiranas in the next 12 months.
The latest infusion brings the total capital raised by the company to Rs 42 crore. Its existing investors include Auxano Capital (Gurugram), AT Capital (Singapore), Desai Ventures, Let’s Venture, MARV Capital (New York), and Metara Ventures (Singapore).
Frendy said it recorded Rs 82 crore in revenue in the financial year 2022-23 and is looking at doubling its sales in the coming 12 months with the company’s geographical expansion.
Sameer Gandotra, Founder and CEO of Frendy said the company has achieved nearly 40 annual turns of inventory at its central warehouse using its proprietary tech-enabled Auto Replenishment System (ARS) to restock marts and serve the micro kiranas.
“Such high inventory turns allows us to finance our central inventory with a credit facility. UCIC has a deep understanding of MSMEs and startups operating in the Bharat sector which makes them a perfect partner for Frendy as we enter our growth phase,” said Gandotra.
Frendy said its hub & spoke model allows it to generate retail margins at its marts and has a tech-enabled B2B layer to operate its micro kiranas. The company’s private label portfolio has 300 SKUs and had recently introduced Fast Food & Beverages, Bakery items & children’s entertainment at its marts.
“UCIC provides loans to companies which are led by strong founders and supported by reputed investors, these companies are addressing large market needs through innovative products and services. Frendy, promoted by visionary and highly experienced founders, has been catering to the needs of micro and small entrepreneurial ventures in Tier 2 & Tier 3 cities of India,” said Abhijit Ray, Managing Director, UC Inclusive Credit.