Blume Ventures leads the investment round to bolster SuperK’s reach and technological infrastructure
SuperK, a pioneering tech-enabled grocery retail chain targeting small towns, has successfully secured $6 million in a Series A funding round led by prominent venture capital firm Blume Ventures. The funding round saw participation from Silver Needle Ventures, Veltis Capital, Atrium Angels, along with several angel investors and syndicates.
The capital infusion is earmarked for bolstering SuperK’s technology infrastructure, expanding its workforce, and amplifying its platform’s reach to strengthen connections between digital native brands and their customer base.
Established in 2020 by Anil Thontepu and Neeraj Menta, SuperK specializes in rebranding existing small-format stores under its banner, providing standardized pricing, discounts, cashback incentives, and digital billing solutions. Since launching its inaugural store in January 2020, SuperK has expanded its footprint to encompass approximately 125 stores across 80 towns in Telangana, operating predominantly through a franchise model. The company focuses on towns with populations ranging from 20,000 to five lakhs.
SuperK’s core mission revolves around facilitating a seamless transition for customers from traditional, unorganized kirana stores to a more organized and tech-enabled retail experience. By infusing modern retail practices into Tier III, IV, and V towns, SuperK aims to elevate the overall shopping experience for residents.
Neeraj Menta, Co-founder of SuperK, articulated the company’s vision, stating, “At SuperK, our vision is to bring a better grocery shopping experience for the small-town customers who are currently stuck with a subpar experience provided by their neighborhood kirana store. Customers have discovered new products and upgraded to a more healthy choice of staples at SuperK.”
The funding round signifies a vote of confidence from investors in SuperK’s innovative approach to grocery retailing in underserved markets. Karthik Reddy from Blume Ventures expressed enthusiasm about SuperK’s strategic direction, emphasizing the potential for modern trade expansion in India’s smaller towns.
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SuperK’s revenue model revolves around offering a diverse range of staples and fast-moving consumer goods (FMCG), with approximately half of its sales attributed to private-label brands. Notably, the company does not currently offer fruits and vegetables in its product portfolio. As part of its growth strategy, SuperK is actively developing a consumer-facing app to enhance engagement and introduce digitally native brands to its customer base.
Despite the challenges posed by logistics and infrastructure in smaller towns, SuperK has achieved significant traction, boasting an annualized revenue run rate of Rs 100 crore. Looking ahead, the company aims to exit FY24 with revenues ranging between Rs 80 to 85 crore, signaling a trajectory of sustainable growth.
