India-based real estate developer Karmvir Avant Group will join other investors in a $5m fundraising round raised by online grocery retailer LocalBanya.
Karmir also invested an undisclosed amount of series A funding in LocalBanya in January. A joint venture had previously raised funding from media company Times Group’s Brand Capital Springboard platform.
MN&C Supply Links Retail Pvt Ltd, which owns and operates LocalBanya.com, will use the funds to expand operations beyond LocalBanya’s Mumbai base in an effort to boost gross merchandise value toward Rs 500m ($8.3m).
Karan Mehrotra, co-founder of LocalBanya.com, said: “The funds will be deployed across 18 months for technological innovation in handling the supply chain, setting up a third warehouse in Kurla (in Mumbai) and distribution, besides expanding its reach in Mumbai and entering four metros, including Pune, Bangalore and Delhi this calendar year.”
Mehrotra, a computer engineer, previously worked at his family business as a distributor for fast-moving consumer goods firms such as Hindustan Unilever.
LocalBanya.com was started in 2012 and utilises a combination of efficient warehousing and cash-and-carry services, with warehouses in Goregaon and Rabale, Mumbai. The company has 170 employees, including 75 delivery personnel dealing with 750 deliveries a day from the website.