24x7Fresh, an online grocery store which promises delivery within an hour of ordering products, plans to raise about $20 million (₹127 crore today) from investors, including SAIF Partners.
The company also plans to hire about 5,000 employees over the next two years, including 3,500 this fiscal. Sources told BusinessLine that several investors, including SAIF Partners and Ivy, are keen to take a stake in 24x7Fresh.
The funds will be used to upgrade technology, maintain top-of-the-line logistical support and set up warehousing and goods sourcing, besides funding marketing initiatives.
“We are not a me-too venture, as we will be the only dedicated app-based grocery service provider in the country,” co-founder and CEO Randhir Kumar told
He said the online grocery business market is worth about ₹500 crore, which is expected to grow to about ₹2,000 crore in two years.
The company has a lean top management with a strong logistical and customer support team, he added. It is also looking to hire e-commerce professionals from international markets, who have sufficient experience and learning in the domain.
Kumar, who also runs mangoesfresh.com, said the online grocery store aims to offer convenient grocery shopping keeping a close eye in providing quality and fast delivery. “Our innovative one-hour delivery with access to about 15,000 products will ensure fresh and fast deliveries and will clearly set us apart from other players in the market.”
He said the challenge in the current market environment is improper inventory management and, hence, the company will implement learning in key areas like technology and logistics to grow the business.