Noida-based Online micro-delivery startup MrNeeds has raised close to $500K in pre-Series A funding from a consortium of investors, including Umesh Arora, an IT professional with interests in several ventures. The company intends to use this capital to expand its operations from select neighborhoods in Noida to other parts of Delhi-NCR region; including Dwarka, Indirapuram and Gurugram.
Founded in 2016 by Hitashi Garg, Ravi Verma, Ravi Wadhwa and Yogesh Garg, MrNeeds runs an app-based subscription service that delivers milk, bread, eggs and other groceries on a daily basis to its customers. The startup a micro-delivery model that focuses exclusively on optimizing the supply chain and reducing delivery costs. As a result, it has drastically cut down its per-delivery cost by restricting all deliveries to only customers living in high-rise complexes, and making all deliveries between 6am-9am. The startup started operations in October 2016 and today serves over 36,000 orders a month, with 9,000 families in Noida as its subscribers.
Ravi Wadhwa, Cofounder at MrNeeds said, “Our growth demonstrates how customers appreciate the value proposition of our differentiated business model. Further, we have finetuned our operations and our per delivery costs are 50 to 70% lower than the industry standard.”
MrNeeds levies no delivery charges and does not specify a minimum order value for its customers. Moreover, as the focus is on delivering high-perishable items like milk and bread that needs to be consumed daily or several times a week; MrNeeds has a very high share of daily active users.
“This investment will power our expansion as we move towards realizing our vision of serving millions of customers everyday and addressing all their daily needs via one platform,” Ravi added.
Hitashi Garg, Cofounder at MrNeeds said, “Our model is designed from the ground up for sustainable profitablity and have already achieved break-even in several pockets that we operate in.”
The serviceable market opportunity for daily essentials consumed by Indians living in high-rises across India is pegged at US$10 billion, according to estimates.