Mumbai based online grocery site, LocalBanya.com has raised an undisclosed amount of funding from BCCL’s Springboard fund, reports YourStory. It’s not clear how the company plans to utilize the funds raised.
LocalBanya was founded in May 2012 by Karan Mehrotra, Amit Naik and Rashi Choudhary. It currently operates only in Mumbai and offers products in categories ranging from fruits, vegetables, exotic vegetables, groceries, personal care, household detergents, kitchen ware, OTC, breakfast, snacks, among others. The company claims that it has more than 8000 products on its site. It allows one to pay cash on delivery or accepts credit/debit card on delivery apart from accepting online payment through credit/debit card and net banking. According to the publication, the company has its own logistics and operates within municipal limits from 9 a.m. up to midnight.
Cracking grocery E-commerce, that too when it offers perishable food products is tricky. The company must have to partner with local grocery stores in order to deliver perishable food items within time. Even if they do crack the code for delivering perishable products, another hurdle in this industry is the thin margins. It’s going to be extremely difficult for the company to expand its operations, considering that the only margin the company could have is over delivering products and Indian e-commerce users are now used to getting free delivery. AaramShop, a Delhi based online grocery shopping site had instead turned to advertising for monetization.
HomeShop18 had recently introduced a food and groceries category to their existing product range, however, it deals only in non-perishable items. There’s also AaramShop, an online grocery shopping that ties up with mom-and-pop grocery stores for orders and ZopNow, among others.