Technology for MSMEs: Business-to-business marketplace Jumbotail, which connects kirana stores and supermarkets with brands and staples producers, is looking to add 2 lakh kiranas by end of the financial year 2021-22, up 2.5X from over 80,000 currently, Cofounder Ashish Jhina told Financial Express Online. “There were 30,000-35,000 kiranas on the platform pre-Covid. We now serve 80000+ kiranas and by the end of FY21 we aim to serve 2,00,000 kiranas in India.” Co-founded by Stanford MBA classmates S.Karthik Venkateswaran and Ashish Jhina in 2015, Jumbotail also offers an inhouse full stack supply chain network with fulfillment centers, distribution centers to enable last-mile storefront delivery and payments collections from its customers apart from a fintech platform to facilitate working capital credit for kirana stores and sellers. The B2B e-commerce market in India currently has players including Amazon, Flipkart, Udaan, and others.
“More than 300 new brands across FMCG and staples categories have come onto Jumbotail’s technology enabled platform since the start of the Covid 19 pandemic. Jumbotail has also doubled the portfolio of its private brand Jumbofarms to provide retailers with sustained availability and quality during the pandemic. Two out of every three retailers on the platform buy at least one Jumbofarms product each month,” said Jhina.
The startup has now also expanded beyond Bengaluru to 13 cities across Tamil Nadu, Karnataka, Andhra Pradesh, Telangana, Punjab, Chandigarh, and over 50 Tier III and Tier IV towns in Uttar Pradesh, Uttarakhand, Haryana, Bihar, Jharkhand, Punjab, Himachal Pradesh, Jammu, and Ladakh. Jhina added that Covid has changed retailer behaviours permanently while the company is seeing 50-100 per cent growth in the number of retailers buying categories like biscuits & snacks, health drinks, tea & coffee, soaps, and home care on the Jumbotail platform indicating a higher consumption from local kirana shops during lockdowns.
As per RedSeer estimates, India’s retail B2B market will expand at a CAGR of 10 per cent to reach $1.3 trillion by FY25 even as online B2B is likely to grow the fastest, at a CAGR of more than 80 per cent on the back of its capability to connect stakeholders in the retail supply chain.
IPO-bound Flipkart had last month reported a threefold increase in e-commerce adoption among kirana members for its wholesale business launched in September last year with the acquisition of the wholesale business of Walmart in India that operated 29 Best Price cash-and-carry wholesale stores. Flipkart Wholesale said it added one in every three customers is now transacting online through the Best Price app and website. On the other hand, Amazon Wholesale had reported a 70 per cent decline in its revenue for FY20 at Rs 3,388 crore while net loss stood at Rs 133 crore – down 5 per cent from the preceding financial year, according to regulatory filings sourced earlier from Tofler.