MrNeeds, an online micro-logistics founder based in Noida, India, received a $500,000 Pre-A round of financing. The investors in this round of financing include Umesh Arora, an expert in the IT field.

Founded in 2016 by Hitashi Garg, Ravi Verma, Ravi Wadhwa and Yogesh Garg, MrNeeds operates an application-based subscription service that delivers milk, bread and other everyday items to users every day. The company uses a micro-logistics model that focuses on optimizing the supply chain and reducing shipping costs. Its service targets are often located in urban areas with high-rise buildings, so its distribution costs are also very low, and its delivery time is between 6 am and 9 am.

The company began operations in October 2016 and currently distributes 36,000 orders per month. More than 9,000 homes in Noida are its subscribers.

“The company’s business development also confirms the customer’s recognition of the value proposition of our business model. In addition, our operating expenses and delivery costs per order are only 50% to 70% of the industry standard,” said Ravi Wadhwa.

MrNeeds does not charge customers for shipping fees, nor does it set a minimum shipping price per order. In addition, because the company is focused on distributing daily consumption of milk and bread, the proportion of daily active users in MrNeeds is high.

“Our goal is to meet the daily distribution needs of millions of customers through the company's platform, and this financing will help us expand,” Wadhwa said.

The company plans to use the financing to expand its operations to parts of New Delhi, including Dwarka, Indirapuram and Gurugram. According to relevant estimates, in the high-rise areas of India, the distribution market for such consumer goods has reached 10 billion US dollars.