Convenience store network Frendy, headquartered in Ahmedabad, has successfully raised INR 16 crores in a funding round led by Auxano Capital and AT Capital Singapore, among others. The startup, operational in over 40 Tier 2-6 towns in Gujarat, plans to utilize the capital to enhance its technological offerings, expand its private label product portfolio, and further extend its network of stores. Frendy’s unique model consists of franchised Frendy Marts digitally connected to a cluster of Frendy Micro stores, serving as a convenient solution for smaller towns and rural areas.

Innovative Store Network Model

Frendy Marts, ranging from 500 to 1000 sq. ft, offer a diverse range of 1,000 to 2,000 products, also serving as dark stores for digitally connected Frendy Micro stores in a 10 km radius. The Micro stores, run by existing family-owned micro kiranas and home-based setups, provide an additional 100 SKUs, with the remaining available for digital ordering through Frendy’s app.

Strategic Expansion Plans

Having achieved a robust Product-Market Fit (PMF) in its initial phase, Frendy aims to become asset and operations light in its second phase. CEO Sameer Gandotra highlights the goal of having 40 operational Marts within the next 12 months, leveraging them as warehouses for existing micro stores. The company envisions an Annual Recurring Revenue (ARR) of INR 300 crores and profitability in the next 24 months.

Financial Performance and Growth Trajectory

In its second year of operations (FY23), Frendy has reported a noteworthy revenue of INR 82 crores, marking a significant increase from INR 40 crores in FY22. With a focus on current geographies and leveraging density for a robust cost advantage, Frendy sets ambitious goals for growth and profitability in the near future.