Chennai-based Startup Fipola Retail India Secures $3 Million led by FMCG behemoth Cavinkare

Fipola Retail India, a Chennai-based omni-channel meat direct-to-consumer company has secured $3 million (INR 22.77 crore) in a new round led by C. K. Ranganathan, Chairman and Managing Director of FMCG behemoth Cavinkare Pvt Ltd.

The money will be used to extend the company's stores into new areas and for marketing. IIFL Securities Premia arranged this transaction (Priority Relationship).

Fipola Retail India's Managing Director and CEO, Sushil Kanugolu, stated, "We are currently at 65 stores and will be opening 37 more in the next 45 days. It's an aggressive timeline but work was going on for the last two months and we are targeting to open 5 to 6 stores a week starting this week."

He added, "Our stores are currently across Chennai, Coimbatore, Pondicherry, Vellore, Tirupur, Hyderabad and Bangalore. We would be entering Pune by May 2022. With 100 plus stores, Fipola will be India’s largest D2C omni channel meat and seafood brand." Fipola has also chalked out plans to enter into newer territories like Mumbai, Delhi NCR, Punjab and Kolkatta. Mr.Kanugolu stated, "Fipola in the next 16-18 months would have a pan India presence."

The market opportunity is enormous since 95 per cent of India's meat and seafood business is still unorganised, with individuals shopping from wet markets and butcher shops. The COVID-19 epidemic has also aided those in the organised meat trade. Mr. Kanugolu added, "The COVID-19 pandemic helped our business grow by almost 300%. Consumers were looking for hygienic and safer options for buying meat." Consumers who buy meat from omni-channel players are mostly young people and middle-class families, which is interesting. Currently, retail accounts for 60% of Fipola's sales, while online accounts for 40%.

Fipola is now aiming to raise $40 million and expects to complete the transaction by the end of June. Mr. Kanugolu underlined, "There is a lot of inbound interests from various VC's and PE's. We will be closing the deal in the next two months."