– ofScale’s maiden funding round also witnesses investments from Matrix Partners India DeVC & Relentless Ventures
– The company is helping leading D2C brands such as Arata, Wishcare, & Paradyes to build their offline footprint
Bengaluru, 13th December 2023: ofScale, a pioneering marketplace aiming to democratise offline distribution for new-age FMCG brands, has raised its pre-seed funding round, securing USD 375K. Early-stage VC First Cheque spearheaded the round, with participation from Matrix Partners India DeVC, Relentless VC, and notable angel investors including Abhishek Goyal (Co-founder, Tracxn), Mekin Maheshwari (Udhyam.org & Ex President Engineering & Chief People Officer, Flipkart), and Revant Bhate (CEO, Mosaic Wellness), among others.
In the landscape of burgeoning consumer brands, particularly in the FMCG sector, the customer acquisition cost for digital sales rises significantly at the growth stage. It does not justify an online-only approach for brands, compelling them to seek offline presence. However, venturing offline poses 3 significant hurdles: Sales Overheads, Prolonged Time to Market, and Maldistribution, which remains substantial even after the other two challenges are overcome. ofScale endeavours to alleviate these challenges through a unique marketplace model, enabling brands to lease retail spaces in independent stores. By pioneering this approach, ofScale aims to democratise offline distribution, offering brands a seamless expansion into physical retail while mitigating entry barriers, thus fostering their success in offline markets.
Founded by Suvigna Shour, Tarun Kedia, and Vijay Akkaladevi in late 2022, ofScale leverages a technology-led B2B model, significantly mitigating the distribution costs compared to traditional means of offline expansion. The company is currently enabling beauty and personal care brands to pave their way to cost-effective offline footprint, before extending its services to other categories.
Speaking about the company’s proposition, Suvigna Shour, Co-founder & CEO, ofScale said, “For every D2C brand that has found some traction online, offline expansion is the next big agenda. ofScale with its offline expertise enables brands to take bite-sized initiatives for their offline agenda resourcefully. Over the last 12 months, more than 15 fast growing beauty and personal care brands have launched offline retail via ofScale.”
“ofScale addresses a crucial need in the market by tackling the offline expansion challenges faced by emerging brands. The founding team brings a wealth of industry experience and diverse skill sets to the table. This combination of expertise in FMCG, operations, technology, and supply chain positions ofScale for success,” Prateek Agarwal, First Cheque.
With the infusion of fresh capital, ofScale plans to double down investments in product development. It also aims to deploy more GTM initiatives, further augmenting the success of its partner brands. Presently, the company has leading beauty & personal care D2C brands such as Bodywise, Deconstruct, Arata, Paradyes, Wishcare, and Hair Originals, in its clientele — highlighting the growing traction of its innovative model.
About ofScale
A Distribution-as-a-Service brand, ofScale revolutionises offline distribution for new-age FMCG brands in India. Its unique marketplace enables brands to lease retail shelves in independent stores, simplifying entry into offline markets. By leveraging technology, ofScale democratises distribution, reducing barriers for seamless mass-scale adoption. The company’s mission is to transform how brands succeed in physical retail spaces.
About ofScale’s Founders
The founding team of ofScale embodies a wealth of industry experience and pedigree. Suvigna Shour, Co-founder & CEO, an alumnus of IIM Calcutta and NITW, brings eight years of FMCG Sales, Marketing, and Technology expertise, leading Marico’s significant distribution expansion into Rural India. Tarun Kedia, Co-founder & COO, with degrees from IIM Bangalore and NITJ, possesses six years in Operations and Supply Chain with companies such as Maruti, Tata Steel, and Airtel. Vijay Akkaladevi, Co-founder & CTO, with an academic background from Vasavi College of Engineering (Osmania University), contributes over a decade’s worth of experience in developing tech across diverse domains like supply chain financing, subscriptions, and B2B recurring payments in fast-growth start-ups. He has been instrumental in the tech development of start-ups such as Razorpay and Bizongo.
