Raincan, a Pune-based subscription startup for delivery of fresh and perishable items, has raised Rs 1.75 crore in pre-series A funding.
The company has raised funds from Prabodh Agarwal, Group CFO, IIFL Holdings Limited and existing investor Dr. Aniruddha Malpani. The company plans to use the funds to expand its delivery operation centers and set-up start of the art logistics platform to facilitate deliveries at the lowest possible cost.
Founded in June 2015 by IIT-Bombay graduates Munendra Singh and Abhijeet Kumar, RainCan is a subscription-based service provider dealing in dairy, meat, bakery, fruits, and vegetables largely. The company delivers around 6000 orders daily in Pune and has crossed Rs 10 crore in revenue and is currently witnessing a growth of 15% every month.
RainCan is inspired from existing milk subscription and delivery supply chain. They deliver ultra-fast moving products with low shelf life to the customer’s doorstep with deliveries starting at 5 am through an in- house delivery team of 60.
“RainCan delights customers by helping them buy small and buy fresh, so that family members can start their day with a healthy breakfast first thing in the morning. We deliver convenience cost effectively. We help busy Women come out of the fear of missing an item for breakfast and lunch by delivering milk and other fresh produce early morning. They can buy a dozen eggs, a tender coconut or as little as a few lemons, ” said Abhijeet Kumar, Co-Founder, RainCan.
The use of technology and optimized logistics team as deliveries are concentrated in nature help keep cost of delivery to under Rs 2. The company has been a capital efficient start-up turned with operational excellence using wide array of technology and analytics platforms. It has been operationally profitable since September 2016.
“We are one of the most capital efficient startup in India in likes of redbus and bookmyshow. Subscription customer base provides the stable revnenue and always upward trajectory. The growth of RainCan is propelled by opening new delivery centers in different locations within a city, each center delivering to specific population. We aim to take the current 4 centers to 20 in Pune and Mumbai with positive cash flow in next few quarters,” said Munendra Singh, Co-Founder, Raincan.
RainCan is also in talks with VCs to raise 10 Crore to achieve 50,000 subscriber base and 100 crore annual revenue.
Current Investor Prabodh Agarwal said “Selling fresh produce online is still in its nascent stage, and the service is expected to grow exponentially in the coming years, as more customers discover its convenience. RainCan has built a business model with good unit economics. With proper capital backing, it has the potential to satisfy many more customers.”
In August 2015, Raincan raised $100K in seed round from angel investor Ajeet Khurana & others, and in April 2017, the startup had received an additional round of Rs. 1 crore from a primary investor, Dr. Aniruddha Malpani.