NEW DELHI : Ripplr, a technology distribution platform focused on fast-moving consumer goods companies, has appointed an investment bank for its Series B funding as it seeks to launch new verticals and “uberize ” the platform through partnerships with traditional distributors in smaller towns and cities.
In an interview, co-founders Abhishek Nehru and Santosh Dabke said they commissioned Investec to raise $40-50 million, including around $10 million in debt. However, they did not reveal the names of potential investors.
A person familiar with the development said that Ripplr is in talks with global venture capital funds and mid-market private equity funds and is seeking a valuation of $200 million, nearly four times the post-market valuation. money of $52 million recorded during an extended streak. A $12 million round at the end of last year. Japanese conglomerate Sojitz Corp. and Stride Ventures led the funding, along with existing investors 3one4 Capital and Zephyr Peacock India Growth Fund in December.
Ripplr’s expectation of a high valuation stems from the significant increase in its net sales. In the first year of operation in 2019-2020, Ripplr had net sales of ₹8.15 crores, according to VCCEdge, VCCircle’s data intelligence platform. This passed to ₹47.4 crore in 2020-21.
In FY22, the company is expected to post net sales of ₹300 crore, Nehru said, up more than six times from a year ago.
Ripplr, owned and operated by Intelligent Retail Pvt. Ltd, is a distribution company that seeks to bridge the gap between FMCG brands and unorganized retailers in India and international markets. In India, licensed distribution has been largely dominated by family businesses, but they lack the technological know-how and ambition to scale, Dabke said. “Brands are looking for companies like Ripplr that are technology-driven, empowered and organized, and add value to their business model.”
The idea is not to crowd out family distributors, but to help them gain technological capabilities with the Ripplr platform, he added.
The company works on two models. One, a comprehensive operations platform for the top 10 metros, where it will bind brands as an authorized distributor, will offer leased warehouses and aggregated vehicles managed by Ripplr, Nehru said. “We will be in the big cities because we want to build a belief with the brands that we understand distribution and we can help them grow.” Ripplr’s distribution partner model will be launched in small towns and villages. “There are distributors, mostly family businesses, working with brands for 3-4 decades in smaller markets,” he added.
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