The hyper-local delivery startup for fresh groceries, Doodhwala, announced that it has successfully raised $2.2 million in seed funding from venture capitalist firm, Omnivore, in exchange for a minority stake in the company.

As per a statement released by the company, the funds raised will be employed toward expanding Doodhwala’s reach into new markets, funding talent acquisition and upgrading its technology. In addition to this, as per the terms of the deal, Reihem Roy, Principal at Omnivore, will be joining the startup’s board.  Earlier in 2017, the startup had raised an undisclosed amount in pre-series A funding from Thomas Varkey, a partner at Stonehill Capital, USA.

“Our unit economics are exceptionally strong. By lowering our delivery cost to Rs 3, Doodhwala is uniquely positioned in a market where other players are struggling. We have done a great job of maintaining a steady month-on-month growth rate while scoring an 85 per cent plus customer retention,” said Ebrahim Akbari, Co-founder, Doodhwala.

Doodhwala was founded in 2015 by Aakash Agarwal and Ebrahim Akbari. It is a subscription-based  early morning delivery platform for fresh groceries, which are sourced from local farms and diaries. The startup has stated that it provides its users a wide selection consisting of everything from fresh dairy, milk, meat, vegetables, and fruits to items with a shelf life. The company offers doorstep delivery to customers before 7 am every day. The company is currently operating in Bengaluru and Pune and claims to have over 4 lakh deliveries a month. The startup’s main competitors include Milkbasket, DailyNinja, Town Essentials and RainCan.

(Picture courtesy: blog.himanshusheth.net)