Subscription-based grocery delivery startup Doodhwala secures $2.2mn from Omnivore

Doodhwala works directly with farms and dairies to ensure delivery of fresh groceries, milk, dairy, poultry, veggies, fruits and household essentials at MRP

Doodhwala, a subscription-based micro delivery service for fresh groceries, has received a seed investment of $2.2 million from VC firm Omnivore in return for a minority stake.

The funding comes less than a year after the company raised an undisclosed amount in pre-Series A funding from Thomas Varkey, a partner at Stonehill Capital in the US.

The new financing will go towards expanding Doodhwala’s service into new markets, funding talent acquisition and upgrading technology.

Founded in 2015 by Aakash Agarwal and Ebrahim Akbari, Doodhwala is a micro-delivery service working directly with farms and dairies to ensure delivery of fresh groceries, which have a short shelf life but high consumption pattern.

The startup offers a variety of milk, dairy, groceries, fresh poultry, veggies, fruits and household essentials at MRP. Doodhwala shoppers set a subscription schedule and receive their groceries for the day promptly before 7am.

Currently operating in Bangalore and Pune, Doodhwala has over 4 lakh month deliveries. 

Aakash Agarwal, Co–founder of Doodhwala, said: “Doodhwala’s unique business structure benefits customers, dairies and supermarkets. It makes farm-to-fork viable by taking over sales, marketing, logistics, and fulfilment for producers. Additionally, we are expected to scale easily due to our capital effective model, paired with the high demand for milk, and a need for regulated milk supply.”

“By lowering our delivery cost to Rs 3, Doodhwala is uniquely positioned in a market where other players are struggling. We have done a great job of maintaining a steady month-on-month growth rate while scoring a 85 per cent-plus customer retention,” said Ebrahim Akbari, Co–founder, Doodhwala.