The fund will be utilized by Grofers to further ramp up its private label products and enhance supply chain
Online grocery delivery startup Grofers has raised $61.6 Mn (INR 400 Cr) in a round of funding led by SoftBank. With this, the Japanese investment behemoth now holds a 35%-40% stake in the Gurugram-based startup.
The funding round also saw the participation of existing investor Tiger Global as well as Russian tech billionaire Yuri Milner. With this new Series E round, Grofers will continue to invest in building private labels and supply chain
Albinder Dhindsa, Co-Founder, and CEO, Grofers, said,
“This fresh round by our existing investors is a vote of confidence and trust in the turnaround at Grofers. We took some hard decisions to fix parts of the business that were not scaling well. Our efforts have clearly contributed in making sure we have a clear path to profitability as well as the largest market share in the online grocery segment; having grown four-fold in the last one year for monthly sales in excess of $15.4 Mn (INR 100 Cr).”
The online grocer currently claims to clock an average of 25,000 orders a day with an order value of Rs 1400.
Initially starting out on a hyperlocal model by delivering groceries procured from local stores within two hours of customers placing an order, Grofers has now moved to a scheduled next day (or even later) delivery model through its own warehouses – a model similar to competitor BigBasket.
With Indian customers going more digitally day by day, online shopping market is expected to move up the curve and touch $1 billion by 2018, compared with $600 million in 2016.