Description
ShopKirana was presented in all chapters and has received considerable interest from the members. Based on the interest we have received across chapters for ShopKirana we are now requesting your commitments.
The company is a raising INR 2.5 Crores at INR 18 Crore pre-money.
List of other participating investors:
- Anil Gelra (CTO, Holachef)
- Atul jain (SVP, Samsung)
- Jai Kumar Nair (SVP, Modelez)
- Labi Williams (Head-Rand Merchant bank, Nigeria)
- Prajaya Desai (Ex- Senior leader, P&G)
- Amit Ghorawat (Product Head, Liazon)
We will accept commitments from 20th May (today) to 22nd May 8 pm (Sunday). Please note your commitment can only be withdrawn if the Deal Lead withdraws his commitment.
The total ask from Lead Angels is INR 80 lakhs executed in two equal tranches at INR 18 Crore pre-money valuation. The minimum commitment is INR 4 lakhs. In case commitments exceed the ask amount, allotment will be proportionate.
The Deal leads have made commitment to invest of total INR 14 lacs.
Pragnesh Podar – INR 10 lacs
Gaurav Rane – INR 4 lacs
Many thanks to Pragnesh Podar and Gaurav Rane for volunteering their time.
Short summary of investor call held on 19th May 2016:
- Milestones agreed for the second tranche – The deal leads and the ShopKirana team has agreed for the execution of second tranche of funds subjective to the profitability in Indore and establishing a presence (~500 retailers onboard) in Mumbai.
The Milestones become applicable from the date of the transfer of money into the account of the company for a period of 6 months
- Current operational metrics–
GMV run rate ~ INR 1 Crore, Revenues ~ INR 3 lacs (increasing M-o-M)
Projected GMV FY16 -17 ~ INR 35 Cr (Indore ~ 30 crores, new city ~ 5 crores)
Trade margins ~ 1% to 8 % (average ~ 3%, consistently increasing M-o-M)
Retailers onboard ~ 2000+, average 150 stores order a day, order size ~INR2000
Brands on board ~ 100+
- P&G – Continuing on the advanced level of discussions with P&G, ShopKirana has recently submitted the documents to open a National account with P&G, which scheduled to be operational from 1st week of June. Since every new account is opened from the 1st week of upcoming month as a part of P&G policies. With current on boarded brands including the likes of HUL, Pepsi, Marico company don’t foresee it as a challenge.
- Scalability in Mumbai– In the past, ShopKirana has already executed a successful pilot with 500 retailers on-board in Mumbai before starting the operations in Indore. Due to the limited resources and bandwidth of team, company shifted the base to Indore to judicially use the capital and validate the business model.
- High valuation– From the perception of Deal leads the ideal valuation would have been around INR 10-12 crores considering the maturity of business, team and the current traction. To hedge the risk of high valuation, tranche approached will be executed at the same pre-money valuation. Also, once the company attain a run rate of GMV INR 3~4 crore/month with break even in Indore the valuation would have been no where same. Both the factors quiet fairly justify the valuation.
