Krave Mart has successfully raised an additional $6 million in funding, bringing its total funds raised to $12 million since launch.
Krave Mart is an online grocery platform operating in Karachi, Lahore, and Rawalpindi which claims to deliver a wide array of products within a timeframe of 45 to 60 minutes.
New investors joining this round include prominent names such as Y Combinator, Japanese football player Keisuke Honda, JAM Fund, Rebel Funds, and Decart Ventures.
Existing investors Zayn VC and ru-Net have also significantly increased their investment in Krave Mart.
The latest funding round was led by a group of investors with a proven track record in backing industry giants, including Delivery Hero, Gorillas, Meituan, Rabbit, Kitopi, Zeptos, and other unicorns.
Krave Mart boasts a network of 20 Dark Stores (on-demand warehouses) in Karachi, Lahore, and Rawalpindi, along with three Mothership Warehouses. The company takes pride in being profitable on every order, with 90% of its stores currently operating in the green.
Co-founded by industry veterans Kassim Shroff, Hammad Bawany, Ahsan Kidwai, and Haziq Ahmed, the company has harnessed the expertise gained from their stints at major players like Foodpanda, Daraz, and SWVL to revolutionize the eCommerce and online grocery space in Pakistan.
Demonstrating robust unit economics, Krave Mart maintains gross margins of 30%+ and anticipates achieving EBITDA level profitability within the next 8 to 10 months.
“From Day 1, it was important for us to start a business that makes money, has real margins, and most importantly makes sure our bottom line is becoming green,” stated Chief Executive Officer Kassim Shroff in the press release.
The company has a dedicated team of over 100 professionals, drawn from the ranks of industry giants like Daraz, Foodpanda, SWVL, and Careem.
With a focus on customer satisfaction, Krave Mart has witnessed strong Average Revenue Per User (ARPU) and order frequency, with existing customers consistently spending more and placing multiple orders.
Krave Mart’s foray into the private label landscape has been strategic, with brands such as Kdaily, Breadly, Spencer & Cole, Turbo Scrub, ﻛﺑﯾرة ﺑﯾﺿﺔ, Choconoms, and Fine Print gaining popularity.
Contributing close to 30% of total orders, the private label segment spans various categories, including spices, lentils, value-added flour, bread, eggs, rice, sugar, dry fruits, paper, personal care, home care, and more.
“I’ve been impressed with Kassim and the Krave Mart team’s relentless focus on pushing for the best unit economics in the industry, and they’ve made incredible progress on the path to building a lasting, durable business,” added Aaron Epstein, Group Partner at Y Combinator.
“The Krave Mart team has demonstrated exceptional perseverance, showcasing their expertise in navigating the unpredictable nature of business cycles,” said Faisal Aftab, General Partner at Zayn VC in the press release.
He added that the team’s ability to raise and scale intelligently, while maintaining positive unit economics in a challenging environment, is truly impressive and they are thrilled to be a part of their journey and look forward to witnessing their continued success.
Krave Mart stated that with this fresh injection of capital, it is poised to further solidify its position as a key player in the rapidly evolving online grocery market in Pakistan. The company notes that its commitment to financial sustainability, innovation, and customer satisfaction sets the stage for continued success in the coming months.