Rozana secures $30 million in Series B funding round led by BII

Rural commerce startup Rozana, has raised $30 million (Rs 275 crore) in a Series B funding round led by existing investors Bertelsmann India Investments, and Fireside Ventures.

The round also saw participation from new investors such as the family office of snack maker Bikaji’s promoters and US-based venture capital firm Spark Growth Ventures. 

The company will use the funds to grow from 86 stores to over 200, enter 2–3 new northern states along the Gangetic belt, and expand into more districts in Uttar Pradesh. The funds will also help improve technology, add more product categories, create private label products, and strengthen brand partnerships.

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“Since 2024, we haven’t expanded our village or geographical presence but have simply focused on deepening our presence – both in terms of penetration inside villages with more households as well as capturing a higher wallet share of existing customers by introducing more categories,” said Dahiya.

“Over 200 million rural households spend upwards of Rs 20,000 per month across staples, FMCG, personal care, household goods, apparel and discretionary categories,” said Dahiya. “Rural consumption growth has outpaced urban growth by approximately 33% for at least six consecutive quarters, and the rural consumption basket is increasingly balanced between food and non food categories with demand for clothing, footwear, spices and dairy outpacing urban share in several segments.”

“When we placed our bet on Rozana, we were looking at it from the lens of creating a new category instead of worrying about competition," Pankaj Makkar, Managing Director of of Bertelsmann India Investments said, emphasising that operating in rural markets allows the company to stay away from the kind of stiff competition seen in Tier II and III cities.

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About Rozana 

Founded in 2021 by Ankur Dahiya, Adwait Vikram Singh, and Mukesh Christopher, Rozana currently has over 75 retail stores and plans to grow to more than 200, entering 2–3 new states along the Gangetic belt.

The company began in Rae Bareli, Uttar Pradesh, and has expanded to 16 districts in UP and Haryana. It now plans to enter Madhya Pradesh, Odisha, and Punjab, while expanding further in its existing markets.

In fiscal 2025, Rozana earned ₹272 crore in revenue and aims to more than double it to around ₹600 crore in FY26. In February, it reported ₹70 crore in revenue, putting its annualised revenue at ₹840 crore.

Over the past year, several startups providing retail services in Tier 3 towns and smaller markets have attracted venture capital.

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