In another major development to enhance the rural commerce infrastructure, rural distribution startup DOCO, formerly Distrisy Technologies, has secured ₹4.5 crores in a pre-seed investment round. GVFL and Malpani Ventures led the round, and other investors included Kunwar Asheesh Saxena, co-founder and CTO of RedDoorz previously, and other angel investors. This investment is a landmark in the journey of the startup since it intends to expand its business activities and build on penetrating the rural regions in India that have low penetration.

Vision and newly raised capital

Jitendra Yadav and Nishant Agarwal founded DOCO in 2023. DOCO is a Rural Distribution-as-a-Service (Rural DaaS) platform. The startup aims to address one of the most long-standing issues in the Indian retail system, the possibility of efficient and guaranteed distribution in the rural and semi-urban regions. DOCO uses a tech-enabled network of dark stores to deliver Fast-Moving Consumer Goods (FMCG) brands to even the most remote locations in the country, and provides last-mile delivery services.

The newly raised capital will be tactically utilized to boost the technology platform of DOCO, expand its network of dark stores, and bolster its operational presence in rural clusters. The vision of the company is to establish a strong and scalable distribution network, which will close the gap between FMCG brands and rural retailers. Through this financing, DOCO will be able to scale up its growth curve and enable more rural retailers to join the formal supply chain.

The CEO of DOCO, Jitendra Yadav, said, “The successful closure of the pre-seed round is a strong validation of our vision to modernise rural distribution and enable FMCG brands to scale faster. With GVFL and Malpani Ventures as our partners, we aim to accelerate expansion, enhance our technology stack, and empower local youth to drive inclusive market.”

Quotation Source: indianstartupnews  

DOCO’s model and approach

The model of DOCO is based on the idea of dark stores, namely, small and highly positioned fulfillment centers that act as the distribution centers of the surrounding rural regions. These stores are operated on the proprietary tech stack that supports real-time inventory management, order processing, and route optimization. Using technology, DOCO can provide the rural retailers with a variety of products at the right time and at the right cost.

Its business model is designed to combat the ineffectiveness of the conventional multi-level rural supply chain, which has several layers, is slow in delivery, and is difficult to access in terms of the product. The direct-to-retailer approach of DOCO does not have these bottlenecks, and this has provided a smooth supply chain solution that is clear and transparent. This not only has a positive impact on retailers but also enables FMCG brands to increase their market penetration, as well as manage their distribution channels more effectively.

The Managing Director of GVFL, Mihir Joshi, said, “DOCO has built a technology-enabled and transparent model that addresses inefficient rural distribution, which is one of the most persistent challenges in the FMCG space. Its approach of integrating grassroots entrepreneurship with digital infrastructure positions it well to capture the growing consumption potential across India. We are pleased to partner with DOCO at this early stage and support its next phase of expansion.”

Quotation Source: indianstartupnews  

Investors involvement and expansion

The role of GVFL and Malpani Ventures in this financing round indicates that the interest of investors in rural commerce and distribution infrastructure is increasing. Both companies come with strategic knowledge and a long history of assisting early startups in high-impact industries. Their support is supposed to provide DOCO with the essential resources and mentorship to grow successfully.

DOCO expects to grow its operations to 25 dark stores and achieve more than 25,000 retailers next year with the fresh infusion of capital. Such growth will allow the startup to work with a broader geographic coverage area and tap into the rising demand for efficient rural distribution solutions. The company also aims to strengthen its technology to facilitate this magnitude, like enhanced analytics, demand forecasting, and automation of the supply chain.

The Principal at Malpani Ventures, Druv Sane, said, “At Malpani Ventures, we are bullish on innovative solutions that solve problems for Bharat. We are pleased to partner with the team at DOCO as they solve the challenge of last-mile distribution in rural markets with a tech-enabled platform and bringing on board local partners.”

Quotation Source: indianstartupnews  

Conclusion

The pre-seed round of funding that DOCO completed is a major milestone towards its vision of transforming rural distribution in India. The startup is also well-placed to meet the needs of rural logistics and produce a sustainable impact due to its advanced investor support, a clear growth strategy, and technology-first orientation. As it keeps growing its footprint and improving its operations, DOCO will be a major facilitator of rural business and economic inclusion worldwide.