Frendy, a tech-enabled small-format grocery chain targeting the daily shopping needs of tier 3 and beyond cities, has secured Rs 2 crore in working capital credit from UC Inclusive Credit (UCIC), the NBFC arm of Unitus Capital. This funding will support Frendy’s central inventory needs, fueling its network of Frendy Marts and Micro Kiranas in tier 3+ towns across Gujarat.
About UC Inclusive Credit
UCIC, an impact-focused Non-Banking Finance Company (NBFC) incubated by Unitus Capital, aims to positively impact millions by providing creative and timely debt capital to innovative companies.
Abhijit Ray, Managing Director of UC Inclusive Credit, commented on the partnership, stating, “UCIC provides loans to companies which are led by strong founders and supported by reputed investors – these companies are addressing large market needs through innovative products and services. Frendy, promoted by visionary and highly experienced founders, has been catering to the needs of micro and small entrepreneurial ventures in Tier 2 & Tier 3 cities of India and hence UCIC is proud to partner with Frendy’s team.”
Frendy’s Vision and Growth
Founded in 2019 in Ahmedabad by Sameer Gandotra (an MBA from the Wharton School and serial entrepreneur), Harshad Joshi (a graduate from ISB, IRMA, and ex-Walmart & Metro Cash & Carry), and Gowrav Vishwakarma (serial tech entrepreneur), Frendy aims to revolutionize grocery shopping in small towns and villages across India. The company operates 25 Marts and over 2000 micro-kiranas in rural Gujarat, with plans to expand to 100 Marts and 3,000 Micro Kiranas within the next year.
Sameer Gandotra, Founder & CEO of Frendy, stated, “As we aim to scale our business 4x, we intend to raise equity and expand our credit lines. Having a lending partner in UCIC adds additional operational & financial discipline which is always good for early stage startups. We have achieved close to 40 annual turns of inventory at our Central Warehouse as we use our proprietary tech enabled Auto Replenishment System (ARS) to restock out Marts & serve the Micro Kiranas. Such high inventory turns allows us to finance our Central inventory with a credit facility. UCIC has a deep understanding of MSMEs and startups operating in the Bharat sector which makes them a perfect partner for Frendy as we enter our growth phase.”
Frendy’s Operational Model and Expansion
Frendy’s innovative Hub & Spoke model enables it to generate retail margins at its Marts and maintain a tech-enabled B2B layer for the smooth operation of micro-kiranas. The company’s digital connectivity bridges the gap between micro-kiranas and their end customers, facilitating last-mile digital commerce for rural consumers. With a revenue of Rs 82 crore for FY23, Frendy aims to double its sales within the next year as it expands its geographical footprint.
Additionally, Frendy has developed a 300 SKU-strong private label portfolio and recently introduced Fast Food & Beverages, Bakery items, and children’s entertainment at its Marts, all of which have shown positive results.
Frendy’s collaboration with UC Inclusive Credit marks a significant step towards scaling its operations and enhancing grocery shopping experiences in tier 3 and beyond cities in India. With its robust operational model and strategic growth plans, Frendy is poised to make a substantial impact on the rural retail landscape.
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