Apnaklub, a B2B wholesale platform for fast-moving consumer goods (FMCG), announced that it has raised $3.5 million in a seed round from Sequoia Capital India's Surge, bringing its total funding to US$5 million. Apnaklub's network of digitally connected wholesale partners connects India's retailers, such as Kirana and general stores in semi-urban and rural areas, to a diverse range of consumer goods and brands.
Manish Kumar and Shruti founded Apnaklub in July 2020 in Bangalore. Shruti has previously held positions at Omidyar Network and Bain & Company. She holds a gold medal from IIT-Delhi and a Harvard Business School diploma. Manish has over 20 years of experience in the FMCG distribution sector, including positions of leadership at Walmart India, Metro Cash & Carry, and Future Group.
According to an Accenture 2020 report, by this year, 13 million Kirana shops across India will account for 75% of the total retail industry.
However, Kirana owners are frequently unable to meet a minimum quantity or purchase amount required by distributors, who are in turn constrained by the capital required to deploy goods to these areas. As a result, many of these retailers have a limited selection of goods to stock in their neighbourhood stores.
Apnaklub fills this void by connecting wholesale agents to provide a wider range of SKUs, no minimum order quantity, and competitive prices to Kirana stores. Apnaklub's network of agent partners collects demand from nearby Kirana stores, aggregates it, and places an order on the app. Apnaklub then delivers the merchandise to the partner, who distributes it to the stores.
As per the report, digital transformation of just 10% of the country's 13 million kirana stores could increase retail consumption by more than 5% while creating 3.2 million new jobs.
Apnaklub's innovative, agent-led solution, known as the Apnaklub Partner Program, currently has over 5,000 wholesalers participating and counting. Partners are given personalised training and support to help them build long-term wholesale businesses while also earning a commission on each order they fill.
“At Apnaklub, we’re going beyond providing an organized supply of FMCG goods to semi-urban and rural areas. Our mission is to equip people across India with the means to set up their own hyper-local micro-distribution businesses, by providing them with better profit margins, access to a large assortment of brands, and ensuring supply consistency. We’re empowering people to take charge of their livelihoods,” said Shruti, Founder, and CEO of Apnaklub.
Apnaklub is a member of Surge's fifth cohort of 23 companies that have created new digital solutions to help businesses and individuals work, live, and learn more effectively in a rapidly changing Southeast Asian landscape.
