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20 Jun 2012

MyGrahak Looks To Raise Funding To The Tune Of Rs.200 Crore

MyGrahak Looks To Raise Funding To The Tune Of Rs.200 Crore MyGrahak.com is an emerging E-commerce venture which looks into the comparatively new business of selling groceries online. Targeted at middle class and upper middle class folks, the company seems to be making a headway in the segment. The Indian Digital Review reports that the company is looking for additional funding, as per the investment plans that they have revealed.
We have covered MyGrahak before and wondered if this could be a revolution along the lines of successes like Flipkart. Well, MyGrahak is growing!  While it is true that the company and the service only operate in New Delhi/NCR right now, but with the funding they are seeking, it is possible that the company may have plans to bring the service to other Indian metros.

The company is seeking to raise Rs. 200 crore till 2015. They project the revenue around this period to be somewhere around Rs. 1000 crore. Currently, the service has 22000 or so registered users. The number of users is supposedly growing at the rate of 25% per month. This is good news for the startup which has been operational since 2010.
MyGrahak’s CEO, Ambuj Jhunjhunwala spoke about the company’s current position and its future plans.
“We would be considering private equity investors for our next level of capital infusion. MyGrahak is gearing up for the next level of growth. Our monthly revenues have crossed Rs. 1.25 crore last month and we will break even by December 2012. We believe the stage is now set for more capital infusion. We plan to use the capital to double our warehouse, to improve logistics and supply chain, for a new office premise in Ghitorni and to enhance our customer experience.”
The key challenges to an online grocery store is the established offline grocery business in India. Kirana Stores in India are well established small scale businesses. For an online store to manage to disrupt this already functional model will take a lot of skill, expertise and consumer insight.