The microdelivery startup working out of Noida, MrNeeds, has announced to a leading daily that is has secured pre series A worth half a million dollars from an unnamed set of investors, barring one investor identified as Umesh Arora, an IT professional. The startup was founded last year by Hitashi Garg, Ravi Wadhwa, Ravi Verma, and Yogesh Garg.
MrNeeds is an app service running on a subscription model and will delive to its subscribers daily essentials and groceries. Their operations are currently limited to select areas of Noida and the funds will be used to expand within Delhi-NCR, Dwarka, Indirapuram and Gurugram.
The service is currently available in select localities in Noida. The startup will use the recently raised funds to expand its operations to other parts of Delhi-NCR, including Dwarka, Indirapuram, and Gurugram to be specific.
According to reports, MrNeeds says their cost of delivery is up to 80% less than the industry standard. Ravi Wadhwa, cofounder of MrNeeds was quoted by the daily as saying, “We have fine-tuned our operations and our per delivery costs are 50 to 70% lower than the industry standard.”
Perhaps it’s a growth strategy to increase customer stickiness, but MrNeeds website does not indicate a minimum amount a customer must order, nor does the startup seeming to charge for deliveries at present either. Right now the young startup is focused on optimizing supply chain and reducing delivery costs.
MrNeeds says they complete more than 36,000 orders a month, and has around 9000 subscribers. “Our model is designed from the ground up for sustainable profitability and we have already achieved break-even in several pockets that we operate in,” said Hitashi Garg, cofounder of MrNeeds.
Another microdelivery startup, Supr Daily, raised 1.5 million dollars in May 2017 from Venture Catalysts and a few Silicon Valley investors that included Y combinatory partners, Paul Buchheit and Jared Friedman. A similar startup, Milkbasket, raised 500,000 dollars from EVC, and Chinese investors, Peter Zou, the CEO of YeahMobi, and Li Jian, founding partner of Zhu Dao investments. DailyNinja is yet another microdelivery startup funded by TaxiForSure founder, Aprameya Radhakrishna along with Town Essentials from Bangalore that has so far raised close to 2 million dollars from angel investors and RainCan that raised 250,000 dollars from angel investors