Apna Mart Secures Funding for Expansion in Grocery Sector

Apna Mart, a franchise-driven grocery and FMCG chain, has successfully raised Rs 214.5 crore (around $25 million) through a combination of equity and debt, with participation from Fundamentum Partnership Fund and Accel, alongside contributions from current investors. Startup Superb provided the exclusive report about Apna Mart’s latest funding round in December.

The board at Apna Mart has approved a special resolution to issue 6,342 Series B compulsory convertible preference shares, priced at Rs 2,78,402 each, aiming to generate Rs 176.5 crore or $20.5 million, along with 3,800 debentures worth Rs 38 crore or $4.5 crore, as revealed by regulatory filings from the Registrar of Companies (RoC).

Details of the Funding Round

Fundamentum Partnership Fund is spearheading this funding round with an investment of Rs 84 crore. Accel India, Peak XV, and Sparrow Capital are set to contribute Rs 60.88 crore, Rs 17.4 crore, and Rs 4 crore, respectively. The remaining amount will come from 2 AM Ventures, Disruptors Capital, and Alteria.

Valuation and Growth Prospects

According to Startup Superb, Apna Mart’s valuation post-allotment is estimated at about Rs 738 crore ($87 million), reflecting an impressive 81% increase from its previous funding round. Co-founded by Abhishek Singh and Chetan Garg, Apna Mart promises grocery and FMCG deliveries within a 15-minute window, in addition to operating physical retail locations. The company serves across 14 cities, including Ranchi, Hazaribagh, and Bilaspur, employing a franchise model to enhance operational efficiency.

Market Position and Financial Performance

As per the startup data intelligence platform, Apna Mart has raised approximately $40 million over several funding rounds. After the recent investment, Accel India stands as the largest external stakeholder with a 20.91% share, followed by Peak XV at 13.06% and Fundamentum at 11.39%.

Based in Bengaluru, Apna Mart reported an impressive 85.6% year-over-year revenue growth, reaching Rs 59.6 crore in the previous fiscal year ending March 2024. However, in their pursuit to expand, the company also experienced a 51.4% increase in losses, totaling Rs 33 crore during the same period.

Future Approach in the Grocery Sector

Apna Mart continues to refine its grocery model via a franchise-led strategy paired with a robust online presence. The company is developing steadily with strong support from investors such as Nandan Nilekani’s Fundamentum and Accel, which has reaffirmed its commitment through a increased investment. Apna Mart is certainly a noteworthy player in the grocery sector, a market that is currently led by quick commerce companies like Blinkit, Swiggy Instamart, and Zepto.