Retail tech startup Peel-Works raises $5 million from Equanimity Ventures, HDFC Bank

Retail tech startup Peel-Works raises $5 million from Equanimity Ventures, HDFC Bank

Peel-Works, a software-as-a-service and big data analytics platform for small-and-medium-sized retailers has raised $5 million in Series B funding. The round was led by Equanimity Ventures, with the participation from HDFC Bank and Bruno Raschle. Existing investors like Unilever Ventures, Chiratae Ventures, and Inventus Capital India also participated in the round. Prior to this round, the company has raised $2 Mn in multiple funding rounds.

Founded in 2010 by Sachin Chhabra and Nidhi Ramachandran, Peel-Works is a Software-as-a-service (SaaS) and a big data platform, that provides end-to-end services to small to medium-sized shopkeepers.

The funding will help Peel-Works strengthen its retail management platform Taikee. Taikee will utilise these funds to expand its footprint to other geographical markets. “The funds will be used to expand business across 25 cities and on board 100,000 retailers over the next six to twelve months” said Sachin Chhabra, founder & CEO, Peel Works. In the grocery segment, Peel-Works is looking to hit close to a $1 billion in GMV run rate in 2019, the company said.

“Kirana or corner stores remain very important foe Indian retail and Peel-Works’ retail management platform helps reinvigorate it,” said Rajesh Sehgal, CFA, Managing Partner, Equanimity Investments.

“We believe Peel-Works, with their data-driven and tech-led approach compliments HDFC Bank’s own focus on delivering value to Indian retailers with digital solutions and banking services. Neighbourhood grocery stores are at the center of India’s retail story and represent a vast market. We believe in Peel-Works’ tech-enabled solutions which aim to improve store sales, profitability, and inventory management.” said Rakesh Singh, Group Head-Investment Banking, Private Banking, Capital Markets and Financial Institutions, HDFC Bank.

RedSeer Consulting says that out of India’s over $500 Bn grocery market, a mere 0.2% is online, of which $1.2 Bn is the overall online market and about $1 Bn is only hyperlocal grocery. India is estimated to have over 12 Mn Kirana stores and this number is estimated to continue growing.

“For us to change the way groceries are sold in India, we need to see players sell at least $150 Bn worth of groceries in the country through a channel that is not a traditional small shop,” Chhabra concluded.