Frendy, the pioneering startup transforming convenience stores with digital connectivity, has successfully secured a bridge round of ₹16 crores ($2 million). Led by Auxano Capital, AT Capital Singapore, Metara Ventures, Apurva Salarpuria family office, and existing investor Desai Ventures, this funding round marks a strategic move in Frendy’s growth trajectory.

Founded in 2022 by Sameer Gandotra, Gowrav Vishwakarma, and Harshad Joshi, Frendy is on a mission to redefine retail experiences in Tier 2-6 towns in Gujarat, catering to the diverse needs of 50,000 customers through 40+ operational stores offering over 4,500 products. The startup’s innovative model consists of Franchised Frendy Marts digitally connected to a network of Frendy Micro stores.

Amidst its second year of operations, Frendy has achieved remarkable success, boasting a revenue of ₹82 crores in FY23—a significant doubling from ₹40 crores in FY22. The startup, headquartered in Ahmedabad, attributes its financial achievements to a team of 100 professionals, including an in-house technology team.

The recently secured funding will play a crucial role in Frendy’s strategic initiatives, focusing on expanding its technological capabilities, diversifying its private label product portfolio, and increasing the store count. Known for their commitment to capital efficiency and measured growth, Frendy’s founders project an Annual Recurring Revenue (ARR) of ₹300 crores and profitability within the next 24 months, leveraging their existing foothold in Gujarat.

Sameer Gandotra, CEO of Frendy, outlined the growth strategy, stating, “Our goal for the coming 12 months is to have 40 operational Marts and further build out our private label offering. We have now perfected our business model and will continue to grow with the right unit economics and scale out the model to the rest of Gujarat and then into other states.”

At the core of Frendy’s success is its unique hub-and-spoke convenience store model, utilizing existing micro stores as last-mile distribution points. The startup’s dedication to empowering communities is evident in its focus on stores run by women, contributing to the digital shopping adoption movement.

Gowrav Vishwakarma, Co-Founder of Frendy, emphasized the role of technology in their operations, saying, “Our goal is to make the tech platform simple & frictionless for the stakeholder. Secondly, to make retail processes more efficient with data-based demand forecasting, auto-replenishment, and data-based pricing benchmarking.”

Frendy’s commitment to building density in existing areas underscores its pursuit of a profitable, sustainable, and scalable model, with a strong emphasis on cost efficiency. As the startup expands its footprint and enhances its product offerings, it continues to shape the future of retail in smaller towns and rural India, providing customers with unprecedented convenience and accessibility.

In a landscape populated by notable players like New Shop, 1K Kirana, Super K, Apna Mart, Citymall, GoBillion, Dealshare, and Rozana, Frendy’s success story adds a vibrant chapter to the competitive grocery and retail tech space. The startup’s innovative approach and strategic vision position it as a key player in India’s evolving retail landscape, marking a promising future for digital convenience in rural areas.

By Admin

Leave a Reply

Your email address will not be published. Required fields are marked *