New Delhi: Direct-to-consumer (D2C) FMCG startup Mitra is aiming to achieve Rs 34 crore gross merchandise value (GMV) by the end of the financial year 2023-24, said Abhishek Kaushik, founder, and CEO of the company in an exclusive interaction with ETRetail.
Currently, the firm’s GMV is at Rs 3.03 crore and the annual recurring revenue (ARR) is at Rs 13 crore. With a 20-25 per cent profit margin, it hopes to reach a revenue of Rs 7 crore in this fiscal.
The brand has a repeat rate of about 74-78 percent. Presently, 75 per cent of its sales come from the offline market, and the rest 25 per cent comes from the online market.
Founded in 2022, the firm raised its first funds of about Rs 1.05 crore in February this year and has raised a total fund of close to Rs 2 crore till present.
Speaking on the company’s investment plans, Kaushik shared, “We look to invest funds in innovation, inventory management, automation, technology, strengthening the omnichannel approach and distribution operations.”
The Gurgaon-headquartered brand covers a range of consumer goods including flour, pulses, spices, dry fruits & nuts, rice, instant mixes, millet-based and ready-to-eat products. The company follows an asset-light model so it directly buys products from the farmers or ties up with local manufacturing mills.
On the product strategy, Kaushik said, “We are launching the products which are an instant hit, basis the study we have done in the market.” With this range, the company looks to target markets of tier 1 to tier 3 regions. It also plans to create its own target audience. Currently, the brand has close to 2,500 distributors in the Delhi-NCR region.
Kaushik stated that there was always a plan to create a distribution network first to scale the business. He hopes to follow a similar offline distribution mechanism in the near future.
According to a report from the Indian brand equity foundation (IBEF), the FMCG market in India is expected to increase at a compound annual growth rate (CAGR) of 14.9% to reach USD 220 billion by 2025, from USD 110 billion in 2020. The modern trade (MT) market is expected to grow at 20-25% annually, which is likely to boost the revenue of FMCG companies.
Seeing the potential in the market, Kaushik said, “We want to disrupt the consumer goods market with affordable and scalable products.”
The D2C boom to a large extent is driven by tier-2 and tier-3 cities. Rising digital connectivity in cities and other areas is driving the demand for FMCG. Subsequently, Mitra plans to expand its business in Western Uttar Pradesh and Jharkhand.
The company is expanding in two ways – by creating its online presence in the markets it is not available and by expanding its offline presence in the markets it already has a presence. It also plans to enter into international locations including Nepal, Bangladesh and Canada.