Handpickd

Handpickd, a technology-driven platform specializing in the direct-to-consumer (D2C) delivery of fresh fruits and vegetables. Initially operating under the name Sorted with an omnichannel approach, the business pivoted in April 2024 to a fully digital model and rebranded as Handpickd, focusing on AI-powered personalization and supply chain optimization.

Core Products and Services

• Customization: Users can select the exact quantity, quality, ripeness, and size of each item.

• AI-powered “match-making”: Proprietary algorithms ensure every order matches the customer’s stated preferences, enhancing satisfaction and reducing returns.

• Zero-inventory logistics: The company does not maintain warehouses or dark stores; instead, produce is procured post-order and delivered within hours, ensuring peak freshness and minimal waste.

• Adjacent categories: The platform has begun expanding into related products such as paneer, which already accounts for 3–4% of total sales.

Unique Value Proposition

• Handpickd’s “match-making” technology enables consumers to specify exact preferences for quantity, ripeness, and size of fruits and vegetables.

• This replicates the tactile, personalized experience of offline shopping at scale.

• The company operates a zero-inventory model, sourcing produce only after orders are placed.

• This minimizes waste and ensures ultra-fresh delivery—produce reaches consumers within 7–8 hours of harvest.

• These features differentiate Handpickd from traditional e-grocers and quick commerce platforms.

Key milestones include

• Achieving EBITDA profitability in Delhi (NCR) within the first year of launch.

• Completing over 100,000 orders and delivering more than 400,000 kg of fresh produce across two micro-markets by early 2025.

• Secured funding of around $2.5 Million seed round to fuel expansion.

Business Model & Revenue Streams

Handpickd operates a B2B2C model, sourcing directly from farmers and vendors and utilizing a network of micro-entrepreneurs for last-mile delivery. Revenue is primarily generated through:

• Direct product sales to end consumers via the Handpickd app.

• Potential platform fees from micro-entrepreneurs or franchisees in the supply chain.

• Early data indicates that the average monthly spend per household is ₹4,000—ten times higher than quick commerce platforms and five times that of traditional e-grocers.

Top Clients & Partnerships

• Investors include Blume Ventures, BEENEXT, Kunal Bahl, and Rohit Kumar Bansal, with an estimated valuation of ₹300 crore ($35 million).

• The company’s micro-entrepreneur delivery network is a key operational partner, enabling rapid, hyperlocal fulfillment.

• No single customer represents a concentration risk, as the platform serves thousands of individual households. However, its initial geographic focus on Gurugram and Bangalore does create some regional exposure.

• Handpickd’s expansion strategy includes forming new partnerships with local farmers and supply chain vendors as it enters additional micro-markets.

Future Outlook & Strategic Priorities

Handpickd’s near-term strategy centres on aggressive geographic expansion—targeting 30 new micro-markets across Delhi-NCR and other Indian metros by the end of 2025. Management aims to replicate its profitable, tech-enabled model in each new city, leveraging learnings from Gurugram and Bangalore.

Growth drivers include:

• Further development of the AI-powered personalization engine, enhancing customer retention and operational efficiency.

• Launching new product categories (paneer is already 3–4% of sales, reflecting recent market trends).

• Continued investment in talent, technology, and territory expansion, with a planned fundraising round in Q1 FY26.

Risks and headwinds

• The fresh produce delivery space is highly competitive, with established players like Swiggy Instamart, Zomato Blinkit, BigBasket, and JioMart, as well as other farm-to-fork startups (some of which have exited the market).

• Supply chain disruptions, regulatory changes, and fluctuating agricultural yields could impact margins and scalability.

• Regional concentration risk remains until the company achieves broader geographic diversification.