Indian startup Gully Network Retail Pvt Ltd, a retail-tech startup focused on providing services to mid-sized stores, has raised $1.2 million (Rs 8.9 crore) during a pre-Series A funding round.
The round in Bengaluru-based Gully Network has been led by startup incubator and accelerator Venture Catalysts, marking the platform’s latest bet this year.
Other participants include Inflection Point (IP) Ventures – which has also been active this year – and DFAN (Digital Futurists Angels Network).
The company is building an asset-light and tech-enabled network of mid-size stores under the brand Gullymart. It partners with local, stand-alone mid-size stores, providing them a retail modern chain experience and helping them improve sales and income.
The Indian offline retail industry is facing increased competition from modern and online retailers. India has an estimated 12 million micro retailers, with 90% of the $400 billion grocery market still unorganised or classified as traditional trade. Kirana stores remain a dominant force in India’s retail landscape.
The company claims to supply the partner stores an integrated tech-enabled solution that has exclusive supply, increased margin, superior fulfilment rates across the whole inventory, automatic and data-driven stock replenishment and access to credit and working capital.
The company’s official statement stated Gully Network plans to use the fresh funds to scale to 100 stores.
In it’s press release statement, the startup said that it plans to open new income streams with scale aside from the first grocery business and can strengthen its offering for retailers as well as end consumers.
Gully Network said that it’s creating its niche within the $25 billion mid-sized store segment that has mostly been ignored amidst the e-grocery and Kirana war.