Mumbai based Online grocery startup Localbanya‘s last effort for revival seems to have failed as its discussions with the three major investment groups for fresh funding have fallen through according to person familiar with the development had told Techcircle.in.
One of the investment groups with whom talks were on is a large media house based in Bangalore, the person said.
Localbanya halted its operations in October being the second such instance in the last two months stating a technology and services upgradation. During the time of writing, the website states “We are under renovation, we will be back shortly”
The startup had laid off almost 40% of its employees as it planned to change its business model. Employees had not received their salaries for two months, and several of the employees whose services were terminated were seeking labour court’s intervention.
Rashi Choudhary is the co-founder and COO at LocalBanya along with her partners Karan Mehrotra (CEO) & Amit Naik (CTO). It was the first player to enter the online grocery market in Mumbai back in 2012. Groceries and staples lead the sales at Localbanya followed by dairy products and household supplies. Besides this, it also offers fresh veggie and fruits.
Localbanya had raised an undisclosed sum in March this year from Shrem Strategies. The company offered 14,000 products across 20 categories, including fruits and vegetables, personal care, kitchenware and even stationery. Localbanya has operations in Pune, Navi Mumbai, Hyderabad and the National Capital Region.