Frendy Raises Rs. 2 crore in Debt from UC Inclusive Credit

FRENDY, a tech-enabled small-format grocery chain addressing the daily shopping needs of tier 3 and beyond cities, has raised Rs. 2 Cr as working capital credit from UC Inclusive Credit (UCIC), an NBFC arm of Unitus Capital. The capital will be deployed to fund its central inventory needs to feed its network of Frendy marts and micro kiranas in Tier 3+ towns of Gujarat. 

UCIC, incubated by Unitus Capital, is an impact-focused Non-Banking Finance Company (NBFC) and is focused on positively impacting the lives of millions of people by supporting companies with creative and timely debt capital.

Commenting on the development, Abhijit Ray, Managing Director of UC Inclusive Credit, says, “UCIC provides loans to companies which are led by strong founders and supported by reputed investors - these companies are addressing large market needs through innovative products and services. Frendy, promoted by visionary and highly experienced founders, has been catering to the needs of micro and small entrepreneurial ventures in Tier 2 & Tier 3 cities of India and hence UCIC is proud to partner with Frendy’s team.” 

In addition, Sameer Gandotra, Founder & CEO, Frendy, says, “As we aim to scale our business 4x, we intend to raise equity and expand our credit lines. Having a lending partner in UCIC adds additional operational & financial discipline which is always good for early-stage startups. We have achieved close to 40 annual turns of inventory at our Central Warehouse as we use our proprietary tech-enabled Auto Replenishment System (ARS) to restock our Marts & serve the Micro Kiranas. Such high inventory turns allow us to finance our Central inventory with a credit facility. UCIC has a deep understanding of MSMEs and startups operating in the Bharat sector which makes them a perfect partner for Frendy as we enter our growth phase.” 

Frendy is building a network of modern neighborhood grocery mini-marts that "makes daily shopping better” for consumers in small towns and villages in India. Frendy’s Marts are also digitally connected to a cluster of micro-kiranas (mom-and-pop stores) and their end customers, allowing Frendy to build a last mile digital commerce bridge to serve a wider range of rural consumers. It currently operates 25 marts and 2000+ micro kiranas, across rural Gujarat and it aims to expand its business to 100 marts and 3,000 micro kiranas in the next 12 months. The company had a revenue of Rs. 82 Cr for FY23 and aims to double its sales in the next 12 months as the brand expands its geographical footprint.