SuperK, a branded retail franchise chain focused on small towns in India, has raised INR 100 crore (about $11.7 million) in a Series B funding round.
The round was led by Binny Bansal’s 3STATE Ventures and Mithun Sancheti, founder and former CEO of CaratLane. Indian cricketer Shubman Gill also invested, along with existing investors Blume Ventures and Xeed Ventures.
In March last year, the Bengaluru-based startup raised $6 million in its Series A funding round, led by Blume Ventures.
SuperK says it will use the new funding to grow its team by hiring top talent in areas like marketing, store operations, product categories, and business growth. This will help the company expand into more towns and add new types of products.
Reports show that grocery shopping in India is a $600 billion market, and small towns (tier-II and below) make up over 80% of this spending.
However, organized retail stores serve less than 5% of this large market. This creates a big opportunity for trusted, tech-based retail businesses to grow quickly in these areas.
SuperK aims to become the top supermarket brand in small-town India, similar to Costco, by working with local franchise partners, using its technology, and building a strong customer base. Right now, SuperK runs 130 stores in over 80 small towns across Andhra Pradesh, all through a franchise model.
The company was started in 2020 by Anil Thontepu and Neeraj Menta. They have built their point-of-sale (POS) machines, a special retail operating system, a customer app, and a partner app to help manage store operations smoothly.
SuperK says it is the only offline retail company in India that has full insight into customer behavior, thanks to detailed data collected from every purchase. This data allows them to send personalized offers to customers and reward franchise partners for meeting sales goals.
The company also shared that its Gold membership program has helped boost profits and retain customers. This program now makes up a significant share of the company’s total sales.
SuperK has recently moved beyond groceries and started selling everyday items like mixers, cookers, fans, and coolers through e-commerce. These new products are offered using the same technology and supply system it already has.
The company hasn’t shared its financial report for FY25 yet, but in FY24, its revenue went up by 41% to ₹84.5 crore. However, its losses also increased by 30%, reaching ₹30.67 crore.
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