Adurcup, an online managed marketplace for procurements needs of restaurants in India, has secured approximately US$325,000 in pre-Series A round of funding from undisclosed corporate investors and family offices, with participation from existing investors.
Adurcup, owned and operated by Noida-based Adcount Technologies, plans to raise a total of US$500,000 from this round.
The capital will be used for “building stronger unit economics by bringing efficiencies in the current supply chain processes using technology”. Additionally, Adurcup plans to expand its operations in Jaipur, Lucknow and Chandigarh. Currently, the startup operates only in Delhi-NCR.
Adurcup earlier received an undisclosed sum in funding from the founders of Dineout in July 2015.
Adurcup was launched in July 2015 by IIT Kanpur pass-outs Kumar Kushang (Head of Execution), Abhishek Kumar (Head of Operations), Nitin Prakash (Head of Product), and Harshit Mittal (Head of Technology).
The company started its journey by providing solutions for the food packaging procurement problems of quick-service restaurants (QSRs). It then evolved to the level of catering to the procurement needs of 1,000-plus restaurants in more than six categories across Delhi-NCR.
A web and mobile platform, Adurcup enables restaurants to procure essentials such as food packaging materials (cutlery, bowls, plates, tray, etc.), breads (muffin, brownie, etc.), house keeping materials, pest control materials, social WiFi, and payments services. It enables restaurants to transact across multiple verticals from a verified vendor base on a daily basis. This way, they are able to bring cost efficiency, reduce turn-around times, thereby reducing dependencies on multiple vendors.
The startup now plans to add three new verticals — kitchen appliances, vegetables and packaged food — to its categories this year.
“We had the first-mover advantage and cracked this tough HoReCa (hotels, restaurant, catering) space that no one else could command. In the last 180 days, we have grown consistently focusing on increasing adoption rate by restaurants to order online. The current fund raise will help us scale, bring more process innovations and improve our product, with profitability being the first milestone,” said Kushang.
Adurcup currently carries out more than 200 services a month and sells more than 1.5 million units per month across categories. It now plans to reach 10,000 unique orders a month by the end of the current financial year and partner with more than 2,000 SMEs. It also plans to launch ‘Adurcup Prime’ for restaurants capturing all their procurement needs in one place, which is expected to be launched by the end of the coming quarter.
“We are taking each quarter as a separate challenge and are achieving milestones each quarter. According to the latest report by NRAI, the top 75 cities across India have 150,000- 175,000 restaurants in the organised segment. We aim to reach US$500 million in revenues in the next four to five years by tapping just 1 per cent of the total opportunity,”Kushang added.
Adurcup was part of Gurgaon-based GHV Accelerator. As part of the programme, the startup has received US$100,000 in funding from the accelerator.
Vikram Upadhyaya, Accelerator Evangelist at GHV Accelerator, said: “(Adurcup is) one of the most-scalable businesses in the F&B sector, and that too on the procurement side. A highly mentor-able team that has done their homework well.”
GHV Accelerator funds and mentors startups between the incubation and venture capital stages, and offers sustainability funding (US$100,000 to 300,000). Its other portfolio companies include MyTaxiIndia (which recently raised US$1 million in a bridge funding from existing investor Nihon Kotsu), FitMeIn (backed by Japanese healthtech firm FiNC), PickMyLaundry (which recently acquired OneClickWash), and Istyleyou.