Mumbai: Online grocery delivery start-up, Jiffstore Software Labs Pvt. Ltd, said on Wednesday that it has raised money from Unitus Seed Fund and Times Internet Ltd. It had earlier raised funds from Unitus in 2014.

The Bengaluru-based company that was founded in 2013 by Aswin Ramachandran, Satish Basavaraj, Shameel Abdulla and Sandeep Sreenath is looking to use the money to expand to new cities, increase its network of stores and increase customers. Reaching out to cities like Mumbai, Hyderabad and Delhi is the primary focus for the company.

“We are excited about the prospects of India’s food-tech industry and are confident that Jiffstore has a strong platform to capitalize on the opportunity. It has demonstrated significant customer traction," said Will Poole, managing partner, Unitus Seed Fund.

Start-ups in online grocery delivery are gaining investor attention. In April, Grofers that started out as a delivery company raised $35 million, acquired Mygreenbox and entered the grocery delivery space. Peppertap.com raised $10 million along with Zopnow.com that raised $10 million.

JiffStore connects local kirana stores with customers through a mobile application that offers online grocery ordering and home delivery options. Users can use the website or mobile app to place orders from their neighbourhood stores and get the items delivered at their doorsteps. The company is clocking 200 transactions a day and is looking at double-digit growth rates. It is available in over 110 locations in Bengaluru.

Online and offline companies are looking to tap into this space as well. Snapdeal.com tied up with Nature’s Basket in January; Flipkart is expected to sell groceries. One97 Communication that owns and operates Paytm connects users to online and offline vendors through the Zip app. In April, Tata Group also launched online grocery service on My247market.com.

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