MMG Group, the Indian partner of McDonald’s and Coca-Cola, has invests an undisclosed amount in YatriKart, a ‘Retail-on-the-Go’ startup, acquiring a stake at a valuation of ₹100 crore. The round also included participation from existing investors such as Artha Venture Fund, Fox Software Ventures, She Capital, and Shuru Up. YatriKart, founded by Gaurav Rana and Shivangee Sharma, is revolutionizing last-mile retail by building a network of tech-enabled kiosks at transit hubs. The funds will support the expansion of its franchise network through FOCO and FOFO models, development of its Quick Commerce for Transit app, and scaling up its smart kiosks at metro stations, highways, and airports. YatriKart is also preparing for a $10 million venture capital round to accelerate its reach and strengthen its convenience ecosystem in India.
1. YatriKart: Business Model and Operations
1.1. Working Model: YatriKart operates as a tech-enabled, last-mile retail ecosystem focusing on high-traffic transit points such as railway stations, airports, metro hubs, and highways. It provides small businesses and retailers with smart kiosks and mobile retail stores that offer a range of convenience products and services. The company’s asset-light model ensures that last-mile merchants can increase their revenue streams with minimal investment.
1.2. Revenue Model: The startup generates revenue through multiple channels, including franchise partnerships (FOCO and FOFO models), revenue-sharing agreements with kiosk operators, commissions on transactions, and technology-driven services such as parcel drop-offs, micro-ATMs, and bag deposits. YatriKart’s strategy is built on high consumer footfall, ensuring sustained growth and profitability.
1.3. Funding Background and Growth Plans: YatriKart has attracted interest from leading investors, with MMG Group joining existing backers such as Artha Venture Fund and She Capital. The latest investment, valued at ₹100 crore, will not only drive its expansion efforts but also improve supply chain logistics. Moreover, it will enhance its Quick Commerce for Transit app, ensuring a seamless and efficient experience for users.
1.4. Founders and Leadership: Gaurav Rana and Shivangee Sharma co-founded YatriKart with a vision to revolutionize last-mile retail in India. Gaurav Rana, also the CEO, brings extensive experience in retail and technology, while Shivangee Sharma specializes in consumer engagement and business expansion strategies. Their combined expertise is driving YatriKart’s growth across multiple transit hubs in India.
1.5. Services and Offerings: YatriKart provides a wide range of services, including smart kiosks offering FMCG products, snacks, and beverages, as well as essential services like micro-ATMs, digital payments, and bag deposits. The startup also enables travelers to place orders through its mobile app and pick up their purchases at designated kiosks, making transit retail seamless and efficient.
2. Market Potential and Competitive Landscape
2.1. Transit Retail Market in India: The Indian transit retail market is valued at approximately $21.7 billion, with significant growth potential due to increased urbanization and mobility. YatriKart is well-positioned to capture a large share of this market by leveraging technology and an asset-light franchise model.
2.2. Competitive Positioning: YatriKart is often compared to Blinkit for transit services, providing instant access to essential goods and services at transit points. Unlike traditional convenience stores, YatriKart integrates technology to offer seamless retail solutions for travelers, making it a unique player in this space.
3. Purpose of the Investment and Expansion Plans
3.1. Scaling the Franchise Network: MMG Group invests in YatriKart at ₹100 Cr valuation, With fresh funding from MMG Group, YatriKart now plans to scale its FOCO (Franchise-Owned, Company-Operated) and FOFO (Franchise-Owned, Franchise-Operated) models. Furthermore, the goal is to establish over 5,000 smart kiosks across major transit hubs, ensuring wider accessibility and improved customer convenience.
3.2. Enhancing Technology and Logistics: The startup not only aims to strengthen its Quick Commerce for Transit app but also focuses on optimizing supply chain operations and improving real-time inventory management. Moreover, by leveraging AI and data analytics, YatriKart is set to enhance efficiency and boost profitability for its franchise partners.
3.3. Expanding Beyond Transit Retail: YatriKart envisions becoming a ‘Complete Out-of-Home Convenience Ecosystem’ by expanding its services to highways, hospitals, colleges, petrol pumps, and transit hubs. Moreover, This expansion aligns with its goal of bridging gaps in convenience retail for on-the-go consumers.
4. Insights from Industry Leaders
4.1. Investor Perspectives: Anant Agarwal, promoter of MMG Group , emphasized YatriKart’s potential to disrupt the fragmented transit retail market. He highlighted the startup’s asset-light model and technology-driven approach as key factors that make it a compelling investment.
4.2. Founder’s Vision: CEO Gaurav Rana stated that MMG Group invests in YatriKart, mission of empowering last-mile retailers and redefining transit commerce. The partnership will accelerate growth and strengthen its foothold in the retail ecosystem.
5. Learning for Startups and Entrepreneurs
5.1. Asset-Light Models Drive Scalability: YatriKart’s success clearly highlights the significant advantages of an asset-light franchise model. As a result, it enables rapid expansion while requiring minimal capital investment.
5.2. Technology Integration Enhances Retail Efficiency: Leveraging AI, data analytics, and Quick Commerce solutions can optimize supply chains and improve customer experiences in the retail sector.
5.3. Franchise Networks Offer Sustainable Growth: For startups looking to scale, franchise-based business models can provide sustained revenue streams and market penetration.
5.4. Targeting High-Footfall Locations Maximizes Revenue: Businesses focusing on transit hubs, railway stations, and highways can tap into a large customer base, ensuring consistent sales growth.
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