While working at the Kirana stores, Pravas Chandragiri from Balasore, Odisha recognized the huge requirement of a management platform to deal with day-to-day operations of the stores. At the age of 19, Pravas laid the foundation of Soptle, a B2B SaaS solution platform for kirana store owners, and now his platform has 120 manufacturers and over 1 lakh retailers. The startup is backed by notable investors and now aims to clock $10 million annual revenue (ARR).
| Startup Name | Soptle |
| Founders | Pravas Chandragiri |
| Industry | SaaS retail solutions |
| Company Classification | Private Limited |
| Headquarters/based-in | Gurugram, Haryana, India |
| Idea | To cover credit gaps for SMEs and support management solutions for small-scale Kirana stores. |
| Revenue | Aims to achieve $10 million in ARR. |
| Date of Commencement | September 2022 |
| Investments | Raised $1.3 million in 3 funding rounds. |
Competitors: Lendingkart, Loantap, Mintifi, and Epaylater
The Problem: Why Does This Matter?
Kirana stores or general stores supply items for our daily needs including groceries. However, these stores deal with hurdles every day:
- Struggling to get timely procurement of goods
- Supply chain management
These challenges specifically affect the efficiency and growth of Kirana stores in India. Pravas Chandragiri from Balasore has been working at Kirana stores and has realized various daily challenges faced by small-scale retailers.
This motivated then-19-year-old Pravas to make something that could empower Kirana store owners in the country.
The Solution: Soptle by Pravas Chandragiri
In September 2022, Pravas founded his startup Soptle. Based in Gurugram, Haryana, it is a B2B SaaS-led retail commerce startup.
Soptle, by tackling the hurdles encountered by these small-scale store owners, aspires to transform the Indian FMCG sector.
Laying the foundation of his startup at the age of 19 was not a sudden decision. After completing his schooling at RK Secondary High School, Pravas was not willing to take the traditional path of doing further studies and going to college. He wanted to become an entrepreneur.
How Soptle assists the Kirana supply chain and operations?
Fintech support by Soptle includes secured purchase financing and bill discounting to enhance transactions within the supply chain. It is the overall point of this startup to make the fund securing process easy for small store owners including loans, lines of credit, and invoice financing.
Its Connect Platform helps manufacturers in digitalizing their operations and improving management of daily activities ranging from procurement to distribution. Thus, it provides better control and visibility over the processes.
It offers expansion by offering nationwide distribution access via tech-enabled sales and distribution channels. Thus, enabling them to reach retailers in different locations.
For businesses looking for long-term loans, Soptle term loans are ideal and do not need invoices or collateral.
Invoice financing by Soptle offers resellers the opportunity to use an invoice as collateral to secure a loan. It is ideal when a retailer is short on funds but requires purchasing products from the distributor.
Soptle efficiently ensures real-time fund releases to distributors. This keeps supply chains functioning smoothly and provides flexible financing through pre-approved lines of credit. These tools can be accessed by the business as needed. Thus, businesses pay only interest on the amount they use.
Business Model: How Do They Make Money?
With partnerships with banks and Non-Banking Financial Companies (NBFCs), the loan disbursement process is streamlined. The revenue model of the startup is based on interest rate differentials which guarantees both profitability and sustainability.
Soptle’s innovative solutions and customer-centric approach helps it in growing fast. Moreover, it has a customer base of 120 manufacturers and 1 lakh retailers joined on the platform.
Soptle in itself is a marketplace which connects FMCG manufacturers with retailers. Moreover, it improves distribution by using the data provided by their B2B Retail Commerce App with the goal to enhance efficiency and transparency in the FMCG supply chain.
It claims to have garnered a significant user base, including 17 enterprises, over 350 distributors, and partnerships with five modern trade merchants. The startup’s monthly disbursements to around Rs 32 crore and Rs 307 crore annually.
Challenges/Struggles: What Roadblocks Are They Facing?
Challenges:
- Navigating the intricate regulatory landscape
- Managing risks associated with lending a diverse array of customers
- Establishing trust and credibility as many small and medium-sized enterprises (SMEs) are used to traditional banking practices.
Soptle overcame these challenges with its commitment to empower SMEs using their advanced technology to make significant strides.
Future Vision: What’s Next?
Across 3 funding rounds, Soptle has raised around $1.3 million and in it most recent funding round, the startup acquired some of the prominent investors like We Founder Circle, Iceland Venture Studie (IVS), Nyra Ventures, and Kube VC. Moreover, the existing investors like Ankur Agarwal (Dunzo founder), and Kube VC are continuing their support to Soptle. The latest fundings will serve in continuing the expansion and development of the startup.
For the 1st quarter of the upcoming year, Soptle aims to generate a revenue of $10 million.
Also, to expand the network of retail outlets to 2 lakh+.
Key Takeaways: Why Should Users Care?
- We are surrounded by opportunities if we notice them.
- Finding a solution while working out with people facing them, seems a viable option.
- It is better to strive for your goal rather than follow the crowd.
