Chaldal Raises $10M Series C Funding - Bangladesh's Largest Grocery Delivery

Chaldal: Pioneering Grocery Delivery in Bangladesh

Established in 2013, Chaldal, based in Bangladesh, distinguished itself as an early adopter of the “dark” store concept within the grocery delivery sector. This innovative approach involved fulfilling orders from dedicated warehouses rather than relying on traditional retail stores. The company now asserts its position as the nation’s second-largest grocery provider and the leading grocery e-commerce platform.

Expansion Plans and Funding

Currently operating 27 warehouses across four cities, Chaldal intends to broaden its reach to 15 additional cities following a recently secured $10 million Series C funding round. The investment was spearheaded by Taavet Hinrikus, a co-founder of Wise, Sten Tamkivi, the chief product officer at Topia, and Xploration Capital, with further participation from Mir Group.

Evolution of the Business Model

Initially, when Chaldal commenced operations in Dhaka eight years ago, order fulfillment involved sourcing products from local grocery stores. However, the prevalence of very small retailers presented challenges in guaranteeing product availability for customers. Consequently, the company transitioned to developing its own network of warehouses.

“While Instacart represented the prevailing model at our inception, we deliberately chose to operate from our own warehouses to achieve superior inventory control,” explained Waseem Alim, co-founder and CEO, in an interview with TechCrunch.

Current Operations and Future Initiatives

As a Y Combinator graduate, Chaldal currently maintains 27 warehouses strategically located in Dhaka, Naryanganj, Chattogram, and Jashore. Plans are in place to expand to 15 new cities and establish a total of 50 warehouses by year-end.

Beyond its core grocery delivery service, Chaldal will also be scaling GoGo Bangla, its on-demand logistics solution tailored for small e-commerce businesses. Furthermore, the Chaldal Vegetable Network, which directly connects farmers with retailers, will be expanded. A direct-to-consumer pharmacy launch is also anticipated.

Financial Performance and Product Range

Chaldal reports generating $40 million in revenue and completing 2.5 million orders over the last 12 months, demonstrating approximately 120% year-over-year growth. The company presently offers around 8,500 products and aims to increase its selection to 30,000 SKUs by December.

Profitability and Operational Efficiency

According to Alim, Chaldal’s primary grocery business has been profitable for some time, with investments directed towards technology development and the launch of new services. A key factor in its profitability is the early implementation of batch deliveries.

Riders from its full-time fleet deliver multiple orders simultaneously, a practice recently supplemented by a part-time driver program. This batching strategy enables Chaldal to offer delivery times as short as 15 to 30 minutes.

Supply Chain Management

Close collaboration with suppliers and manufacturers has been crucial to Chaldal’s success. “We are among the most capital-efficient online grocery retailers globally, and this is largely attributable to our diligent work with our supply chain,” Alim stated.

The company directly sources produce from farms and collaborates with major manufacturers like Unilever. “Given the absence of large retailers like Walmart in this market, dominated by small shops, we’ve significantly impacted the supply chain,” Alim explained. “We are continually expanding our microwarehouse model and are now supporting numerous small merchants through the delivery infrastructure we’ve built, including many who joined GoGo Bangla during the pandemic.”