E-commerce venture CityMall enters into the fresh grocery space – Get News Alert

E-commerce venture CityMall enters into the fresh grocery space – Get News Alert

CityMall, a social e-commerce venture, has recently indicated plans to introduce fresh grocery deliveries in the coming quarter. As per sources, this is the second attempt of the firm to enter the fresh groceries space, especially when non-metro cities are turning to be the big area of focus for new-age e-commerce startups.

CityMall has struggled with supply chain issues earlier despite captivating demand around the first round.

At present, it is working to build a distributed supply chain closer to the source and integrate its backend for fresh produce and dry staples.

The startup focuses on delivering fast-moving consumer goods, electronics and fashion products, via a community group-buying model in small towns, and is financed by Elevation Capital and General Catalyst.

Presently, the company is located in 15 districts across Delhi-NCR, Haryana and Uttar Pradesh.

This expansion plan by CityMall comes when it is in discussions to close a funding round of around $70 million from new and existing backers. The firm has till now picked around $36.5 million.

A group of young ecommerce companies are entering the market of fresh groceries, which they consider to be a high-frequency category or the one where a majority of consumers’ wallet is expected to come from.

According to sources familiar with the sector, these companies wish to hook consumers to their platforms via a high-frequency segment, low-ticket size and later trade up for larger items like electronics.

Additionally, the major players among these new-age e-commerce companies include SoftBank-funded Meesho and Tiger Global-funded DealShare. They intend to be different from the older cohort of horizontal online stores like Amazon and Flipkart.

Cofounder of Meesho, Vidit Aatrey said that the firm is planning to enlarge its grocery offerings Farmiso by investing substantial capital into the vertical next year. As a result, the unicorn will be prioritizing offering Groceries.

Source Credit – https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/citymall-joins-hyper-competitive-fresh-grocery-space/88423144

Source: https://www.getnewsalert.com/e-commerce-venture-citymall-enters-into-the-fresh-grocery-space