Furtilo raises seed funding to bring hyperlocal delivery to 500 small towns

Furtilo, a Bengaluru-headquartered delivery startup focused on semi-urban India, has secured seed funding from US investment firm Trikona LLC to expand its zero-commission retail network into 500 small towns.

The investment, whose value was not disclosed, will finance the company's rollout across Tier-3 and Tier-4 markets over the next two years. The startup intends to scale up engineering and operations, while adding parcel delivery and bike taxi services on top of its existing rider network.

Furtilo operates on a model designed to bypass the steep commission structures common among large metropolitan platforms. Instead of taking a 20% to 30% cut of each ticket size, the company charges neighbourhood merchants a flat subscription starting at Rs 99 a month. Local businesses keep their full order revenues, and customers pay standard delivery fees while ordering through Unified Payments Interface (UPI) or cash on delivery.

What the network covers

Founded by Ankit Agrawal, Sumit Rathore and Vaibhav Rathore, the business traces its roots to Dalauda, a small town in Madhya Pradesh's Mandsaur district. Having relaunched under the Furtilo brand in January 2026, the platform connects neighbourhood restaurants, kirana shops, stationery outlets, electrical stores and agricultural suppliers to local customers.

Furtilo has rolled out services to 37 towns across Madhya Pradesh, Rajasthan and Gujarat, including locations such as Dhar, Shajapur, Sendhwa, Pratapgarh and Lunawada.

Expanding rural retail access

The funding comes as digital connectivity and robust public payment rails enable commerce to penetrate deeper into India's interior. Small-town shopkeepers, who traditionally depended purely on counter footfall, are using digital storefronts to reach households across wider administrative boundaries without losing margins to aggregator commissions.

Furtilo co-founder and chief executive Ankit Agrawal said local merchants already hold community trust, saving up to 30% of order value on the platform compared with commission-based aggregators. Trikona LLC managing partner Keshav Kiran noted that monthly order volumes had quadrupled within four months, underscoring pent-up consumer demand across towns that national platforms have largely left unserved.

What happens next

Furtilo plans to accelerate its rollout pace from roughly 10 new towns a month to 30 a month by June 2027, working towards its mid-2028 goal of 500 towns.

To maximise the earnings of its rider fleet, the startup will also introduce intra-city parcel logistics and two-wheeler taxi services in states where commercial bike taxi regulations permit them.