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Kirana Club, which connects kirana stores with FMCG companies online, plans to grow business five times next year by expanding its footprint and adding new clients.
The company plans to tap into an estimated 13 million kirana stores that play a crucial role in the retail sector to achieve the target of $1,225 billion by FY26.
Kirana store owners usually operate in isolation with little access to real-time business information creating a hindrance in their growth. About 90 per cent of the total FMCG sales in the country happens through the kirana channel.
Feet-on-street approach
While the FMCGs adopt a feet-on-street approach to convince retailers to stock products, their reach is limited to 10-15 per cent of the total outlets.
Anshul Gupta and his wife Aishwarya Jain run the company as a LinkedIn for kiranas and have already on-boarded over 18 lakh kiranas on the platform from over 10 states.
Anshul Gupta, Founder and CEO, Kirana Club said the company intends to solve information asymmetry among kiranas in terms of awareness on prevailing market trends, commodity price fluctuations and brand details.
The platform provides them with neutral information to make better decisions and scale their business, he said.
“It also serves as an effective media channel for FMCGs to connect directly with kiranas,” Gupta added.
The company has partnerships with over 15 leading FMCG companies, including Coca-Cola, P&G, and PepsiCo.
Unlike larger retail chains, kirana store owners understand the preferences not only of consumers but also their entire family.
Eyeing growth
Kirana Club claims to have penetrated in 10-15 per cent of the Indian market and has set a target to grow 5 times in the next year. It is also looking to penetrate deeper into the existing markets and enhance footprint in the southern states.
The company aims to invest in R&D and scale its AI capabilities to serve kiranas and brands better by enhancing its recommendation engine. The Co-Founders also plan to tap markets in Southeast Asia, Africa and Latin America.
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