Bengaluru-based milk and daily essentials delivery startup called Doodhwala is reportedly securing funds up to $12 million (around Rs 85 crore) in a Series A round of funding. The round is being led by Impact investment firm Omnivore Ventures.
Along with this, the company had approached both new and existing investors for the fresh fundraise.
“We will be closing the round in January next year as the term sheets are getting finalised and the talks are at a fairly advanced stage,” Doodhwala co-founder Ebrahim Akbari said. “We are looking at a post-money valuation of $40 million.”
Also, he stated that American, Chinese and Japanese investors were in the fray. US investors are keen on subscription businesses as they are creating a mark of their own and showing potential growth.
With these funds, the startup plans to expand its business within its existing markets — Bengaluru, Hyderabad and Pune. The company is operated by Banger Tech and is also expecting to target Tier-2 cities by next year.
Founded in 2015 by Aakash Agarwal and Akbari, Doodhwala is a mobile-first subscription platform for milk and daily essentials. The company delivers over a lakh of products such as eggs, baked goods, meat, fruits and vegetables, groceries and staples, health drinks, personal care, and hygiene products among others, along with 70 varieties of organic, raw and commercial milk.
Doodhwala makes deliveries before 7am every day and claims to handle more than four lakh deliveries in a month. The company claims to be operationally profitable across verticals.
Startups in the online subscription-based hyperlocal delivery space, which offer daily essentials have attracted investor interest in recent times.