RainCan, a subscription startup for delivery of fresh and perishable items has secured Pre-Series A funding of Rs 1.75 Crore from Prabodh Agarwal, Group CFO, IIFL Holdings Limited and existing investor Dr. Aniruddha Malpani, who had invested around ₹1 crore in April this year.
The Pune-based startup was started in 2015 by IIT-Bombay graduates Munendra Singh and Abhijeet Kumar. Raincan is the subscription based service provider for morning and breakfast essentials such as milk, bread, eggs, fruits, and vegetables. With the team member of 60, the startup provides ultra fast deliveries starting from 6 AM every day.
Abhijeet Kumar, Co-Founder, RainCan, said: “RainCan delights customers by helping them buy small and buy fresh, so that family members can start their day with a healthy breakfast first thing in the morning. We deliver convenience cost effectively. We help busy Women come out of the fear of missing an item for breakfast and lunch by delivering milk and other fresh produce early morning. They can buy a dozen eggs, a tender coconut or as little as a few lemons.”
RainCan claims to deliver around 6000 orders daily in Pune and has crossed Rs 10 Crore in revenue and is currently witnessing a growth of 15% every month. The startup will use the fresh funds in expanding the delivery operation centers and set-up start of the art logistics platform to facilitate deliveries at the lowest possible cost.
Apart from this, reports are that RainCan is also in talks with VCs to raise 10 Crore to achieve 50,000 subscriber base and 100 Crore annual revenue.
Commenting on the investment, Prabodh Agarwal, who invested in the current funding round, said “Selling fresh produce online is still in its nascent stage, and the service is expected to grow exponentially in the coming years, as more customers discover its convenience. RainCan has built a business model with good unit economics. With proper capital backing, it has the potential to satisfy many more customers.”
RainCan claims to have been operationally profitable since September last year. For this, a majority of the credit goes to the company’s use of technology and optimization of its logistics team. Due to this, deliveries are concentrated in nature help keep the cost of delivery to just under ₹2. Read more about Indian Startup Ecosystem.
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