Established in 2013, Bangladesh trickery was one of the first grocery delivery startups in the world to use the “dark” store model, taking orders from its warehouses rather than from retail stores. Now the company says that it is the second largest kirana player and largest kirana e-commerce platform in the country, with 27 warehouses across four cities. With the recently closed $10 million Series C, Chadl plans to expand to 15 new cities. The round was led by Tavet Hinrichs, co-founder of Wise; Stan Tamkiwi, Chief Product Officer of Topia; and Exploration Capital with the participation of Meer Group.
When Chadal launched in Dhaka eight years ago, it first took orders from local grocery stores. But most of the retailers in the city are too small and the mobiles were unable to guarantee the items were available to their customers. As a result, it decided to start building its own network of warehouses.
Co-founder and CEO Wasim Alim told Nerdshala, “When we started, Instacart was still the dominant model, but we took a different stance and said we wanted to deliver from our warehouses because it would lead to better inventory management. It happens.”
Now the company, a Y Combinator alum, has 27 warehouses in four cities (Dhaka, Narayanganj, Chattogram and Jashore). It will expand to 15 new cities and plans to open 50 warehouses by the end of this year. In addition to its flagship grocery delivery, Chaldal will be expanding its on-demand logistics service Gogo Bangla for small e-commerce businesses and Chaldal Vegetable Network, which connects farmers directly with retailers. It also plans to launch a direct-to-consumer pharmacy.
Chadl claims to have generated $40 million in revenue over the past 12 months and placed 2.5 million orders, growing nearly 120% year-on-year. It currently sells around 8,500 types of products and is looking to expand this to 30,000 SKUs by December.
Aleem says Chaldal’s core grocery operation has been profitable for some time, and it only invests cash in building out its technology or launching new verticals. One of the reasons it was able to make money is because Chaddle started deliveries early, shipping riders out of its full-time fleet with multiple orders at a time (it recently launched a part-time driver program). Batching also means that Chadal is able to offer delivery in 15 to 30 minutes.
Chaldal also worked closely with suppliers and manufacturers. “We are one of the most efficient online grocery retailers in the world in terms of the amount of capital that is invested in us versus the size of us, and that is mainly because we really care about our supply chain and all those details. Working together,” Aleem said.
For example, it produces directly from farms, and partners with large manufacturers such as Unilever. “Walmart and stores like that don’t exist here, it’s mostly small retailers, so we’ve been able to have a huge impact on the supply chain of things,” Alim said. “We’re continuing to expand our micro-warehouse model and, as part of the distribution mechanism we’ve built, start supporting a lot of smaller merchants,” including many vendors who signed up for Gogo Bangla during the pandemic. have make.”