India-based grocery retail chain nets $6m to tap into small-town markets

SuperK cofounders Anil Thontepu (left) and Neeraj Menta/ Photo credit: SuperK

India’s grocery retail sector is estimated to be worth around US$600 billion, and multiple startups – as well as tech majors like WhatsApp and Tata-owned BigBasket – have all vied to conquer this space. More recently, quick commerce has increased in popularity, with beauty products gaining steam among consumers.

Much of that growth, however, remains centered in major urban areas. Consumers in Tier 2 towns and below still rely on traditional mom and pop stores known as kiranas. Startups like 1K Kirana – which aims to digitalize the shops’ operations  – and B2B ecommerce player Udaan also aren’t faring so well.

One startup aims to change this. SuperK, a franchise-based retail chain, is bringing its tech-enabled supermarkets into small towns across India, where customers are often going through an “organized retail experience” for the first time.

The startup has raised US$6 million in series A funding from investors like Blume Ventures and Silver Needle Ventures.

Co-founded in 2020 by Anil Thontepu and Neeraj Menta, SuperK uses tech for detailed purchase analysis, which helps stores understand customer buying patterns and customize offers. Its outlets are sized between 500 to 1,000 square feet and house about 2,500 stock-keeping units.

It is currently operational in over 80 towns in the south Indian state of Andhra Pradesh and has served over 500,000 families in the past four years. With the recent fund inflow, SuperK aims to improve its tech infrastructure and hire new staff, as well as onboard digitally native brands onto its platform.

See also: 400m Indians use WhatsApp, but will they shop on it?