Startup Originals Team
SuperK, a retail chain aiming to revolutionize grocery shopping in India’s small towns, has raised Rs 100 crore (about $11.7 million) in its latest Series B funding round. With prominent backers and a technology-driven approach, SuperK is determined to become a household name in tier-II and below markets, where organized retail still has vast untapped potential.
Major Investors in this Round:
The Series B funding was led by Binny Bansal’s 3STATE Ventures and Mithun Sacheti, founder and former CEO of CaratLane. Notably, the round also saw participation from Indian cricket star and current Men’s Test captain Shubman Gill. Existing backers Blume Ventures and Xeed Ventures continued to show confidence in SuperK by participating as well.
Previous Funding Milestone:
Prior to this round, SuperK raised $6 million in its Series A funding led by Blume Ventures in March of the previous year, which helped lay the groundwork for expansion and infrastructure development.
How SuperK Plans to Use the New Funds:
SuperK intends to channel the fresh capital into scaling up its organizational capabilities. This includes:
- Hiring top talent across marketing, store operations, category management, and growth roles.
- Rapidly expanding into more towns and launching new product categories.
The Opportunity in Indian Grocery Retail:
India’s grocery retail sector is a massive ₹600,000 crore ($600 billion) market. Remarkably, over 80% of this spend comes from small towns-areas where less than 5% of purchases take place through organized retail. SuperK’s model targets this huge opportunity by bringing tech-enabled, trusted retail to regions largely underserved by traditional supermarkets.
SuperK’s Business Model and Technology:
SuperK operates on a franchise model tailored for small-town India, collaborating with local partners to run branded stores. The company currently boasts 130 stores across more than 80 small towns in Andhra Pradesh. Technology is central to its operations:
- Indigenous POS Machines & Retail Software: SuperK has developed its own point-of-sale machines and a proprietary retail OS.
- Digital Engagement: There are dedicated apps for both customers and franchise partners, ensuring streamlined operations and improved shopper experience.
- Advanced Data Analytics: The company collects detailed data at every purchase, enabling it to tailor offers and reward high-performing franchisees.
Customer Engagement and Loyalty:
One standout feature is SuperK’s Gold membership program, which rewards loyal customers and franchise partners. This program has not only improved profitability but also driven higher customer retention rates, now accounting for a notable portion of the company’s total sales.
Recent Expansion Beyond Groceries:
SuperK is diversifying beyond core grocery products by leveraging its established tech and supply chain stack. The chain now offers popular household items such as mixers, cookers, fans, and coolers, targeting value-conscious families and meeting a broader range of everyday needs.
Financial Performance:
While the company’s FY25 report is yet to be filed, SuperK reported a significant 41% increase in revenue, reaching Rs 84.5 crore in FY24. However, its losses also increased by 30% to Rs 30.67 crore during the same period, reflecting the investments being made to scale operations.
Founders and Vision:
Founded in 2020 by Anil Thontepu and Neeraj Menta, SuperK is on a mission to become the “Costco of small town India.” The co-founders are betting on strong technology, local partnerships, and data-driven strategies to lead the next wave of organized retail in underserved markets.
SuperK’s fresh funding and focus signal a new chapter for retail in India’s small towns, where vast opportunity meets innovation and ambition.
