Jumbotail Raises $14.2 Million to Digitize Stores in Bangalore

By Jemima McEvoy Monday, January 18, 2021

Pulling in an additional $14.2 million before close, Jumbotail has raised $44 million in its Series B fundraising round. The Bangalore-based startup has raised roughly $54 million in equity investment to date in a bid to bring local businesses in India online.

What Is Jumbotail?

Jumbotail was founded in November 2015 by entrepreneurs and co-founders Karthik Venkateswaran, who now serves as chief executive officer, and Ashish Jhina, who holds the role of chief operating officer. Together, these two started the company to help bring overlooked parts of India’s brick-and-mortar marketplace online.

In essence, Jumbotail is a wholesale and food grocery platform where neighborhood stores (known as kirana) can access new customers and benefit from the startup’s services like storefront delivery and payments collection for its sellers. The company also hosts a financial technology platform that provides payment solutions and access to working capital credit from third-party credit providers to its customers through partnerships with financial institutions.

These services are useful for local businesses looking to reach new customer bases and otherwise inaccessible financing as well as customers looking for a way to access their favorite neighborhood stores — and discover new ones — online.

Money and Investors

Jumbotail raised $11 million as part of a Series B2 funding round last October. The latest injection of money, the final $14.2 million of the Series B round, which closed in January, was led by VII Ventures. Also involved in the fundraising round were Nutresa, Vernorte, Jumbofund, Klinkert Investment Trust, Peter Crosby Trust, Nexus Venture Partners, Discovery Ventures, as well as “a group of high net-worth individuals and industry leaders,” the company told The Economic Times.

Managing Director of VII Ventures Chadi Hajjar called Jumbotail “one of India’s most dynamic and fast-growing businesses,” adding: “Jumbotail has all the ingredients for success.”

Future Business Plans

Leaders of the startup said that they plan to use the capital to hire more talent, scale the marketplace, and expand the network of their retail brand J2f, which works with offline kirana stores to sell both offline and online.

There are more than 30 million neighborhood stores in India, which are spread across cities and towns around the country. In other words, there is plenty of room for business expansion and growth. “We are seeing tremendous interest from investors across the globe who are drawn to our highly scalable and operationally profitable business model, built on the industry’s best technology,” said CEO Ashish Jhina in an interview with TechCrunch.

Final Takeaways

Though creating an online marketplace is by no means a groundbreaking idea, this startup has managed to identify an overlooked market for which it can provide the service. Furthermore, this market is wide-reaching, giving Jumbotail’s business vast opportunities for growth.

About the Author

Headshot for author Jemima McEvoy

Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.

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