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Business News/ Companies / People/  Ripplr hires banker for Series B round, net sales set to grow sixfold in this fiscal
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Ripplr hires banker for Series B round, net sales set to grow sixfold in this fiscal

In an interview, co-founders Abhishek Nehru and Santosh Dabke said it has mandated Investec to secure $40-50 million, including debt of around $10 million. However, they did not reveal the names of potential investors

Co-founder Abhishek Nehru said it has mandated Investec to secure $40-50 million.Premium
Co-founder Abhishek Nehru said it has mandated Investec to secure $40-50 million.

NEW DELHI : Ripplr, a tech-enabled distribution platform focussed on fast-moving consumer goods companies, has appointed an investment bank for its Series B funding as it seeks to launch new verticals and ‘uberise’ the platform through tie-ups with traditional distributors from smaller towns and cities.

In an interview, co-founders Abhishek Nehru and Santosh Dabke said it has mandated Investec to secure $40-50 million, including debt of around $10 million. However, they did not reveal the names of potential investors.

A person familiar with the development said Ripplr is in talks with global venture capital funds and mid-market private equity funds and is seeking a valuation of $200 million, or nearly four times the post-money valuation of $52 million it clocked during an extended Series A round of $12 million late last year. Japanese conglomerate Sojitz Corp. and Stride Ventures led the funding, along with existing investors 3one4 Capital and Zephyr Peacock India Growth Fund in December.

Ripplr’s expectation of securing a high valuation stems from the significant jump in its net sales. In the first year of operations in 2019-20, Ripplr had clocked net sales of 8.15 crore, according to VCCEdge, the data intelligence platform of VCCircle. This increased to 47.4 crore in 2020-21.

In FY22, the company is set to post net sales of 300 crore, said Nehru, growing over six-fold from the year-ago.

Ripplr, owned and operated by Intelligent Retail Pvt. Ltd, is a distribution company seeking to bridge the gap between FMCG brands and unorganized retailers across India and in international markets. In India authorised distribution has largely been dominated by family-owned businesses but they do not have the technology know-how and the ambition to scale, said Dabke. “Brands are looking at companies like Ripplr that are tech- driven, authorized, and organized, and adds value to their business model."

The idea is not to crowd out family-owned distributors but to help them get tech capabilities with the Ripplr platform, he added.

The company is working on two models. One, a full stack operations platform for the top 10 metros, where it will tie up with brands as an authorized distributor, offer leased warehouses and aggregated vehicles run by Ripplr, Nehru said. “We will be in larger cities as we want to build a conviction with brands that we understand distribution and we can help them scale up." Ripplr’s distribution partner model will be launched in small cities and towns. “There are distributors, mainly family owned, working with brands for 3-4 decades in smaller markets," he added.

joseph.rai@livemint.com

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ABOUT THE AUTHOR
Joseph Rai
Joseph Rai reports on the venture capital industry and deals in healthcare and tech startups for VCCircle and Mint. He has spent over 11 years in business journalism, having previously worked with Reuters and a startup, Contify.
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Updated: 11 Mar 2022, 11:47 PM IST
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