Ex-Paytm employees’ vending machine startup raises $4m

Daalchini, an India-based vending machine startup, has raised US$4 million in a series A funding round led by Unicorn India Ventures. Artha Venture Fund, ex-CEO of Dominos India Ajay Kaul, and VSS Investco – investment fund of Paytm CEO Vijay Shekhar Sharma also participated.

The company claimed that it is the largest funding round ever raised by a vending machine firm in the country.

Daalchini co-founders Prerna Kalra (left) and Vidya Bhushan / Photo credit: Daalchini

Founded in 2017, Daalchini helps direct-to-consumer brands sell their products via its smart vending machines. Users can also order ready-to-eat meals via its app and pick it up from a specific vending machine in the next 30 minutes.

The company has put over 850 vending machines in public places, such as co-working spaces, hospitals, and railway stations, in 23 Indian cities. It claimed that it has more than 200,000 monthly active users.

Daalchini said that it posted 120 million rupees (around US$1.5 million) in revenues for financial year ended 2022. More than 90% of its vending machines are EBITDA positive within 45 days. It aimed to hit 500 million rupees (around US$6.3 million) in revenues in the next 12 months.

The startup was established by Prerna Kalra and Vidya Bhushan, who have previously worked at Paytm.

Daalchini plans to use the fresh funding for product development and expansion purposes. It aims to increase its network to 5,000 vending machines in 50 cities by the next 18 months.

Currency converted from Indian rupee to US dollar: US$1 = 80 rupee.

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