Softbank, Japan’s Multinational conglomerate is the largest investor in the Gurugram-headquartered company, Grofers with a shareholding of around 46%. In 2018, SoftBank had led the $53 Million worth Series E round for Grofers. Last year, SoftBank led the $220 Million Series F funding round for Grofers.
In November 2019, Grofers acquired a fund infusion worth INR 320 Cr ($42.8 Mn) from Grofers International, a Singapore-based entity. This statement is according to the data on CrunchBase. Until today, Grofers has raised a total of around $607 Million. With the help of 12 funding rounds.
A report of Economic Times stated that the company’s valuation in the round would remain rather flat at around $650-700 million. Which is same as it was in the previous funding round. According to the reports on the latest round, Grofers’ existing investor Tiger Global Management and KTB Ventures might also invest up to $30 million.
While the COVID lockdown was advantageous for Grofers, as it saw a hike in the number of people using online grocery delivery services. Grofers recorded a 60% boost in its gross merchandise value (GMV) as compared to the pre-COVID records. Not only has the company noticed a rise in the number of users but it has also seen a 40% increase in the basket size amidst the lockdown.
Grofers was founded in 2013 by two IIT graduates Albinder Dhindsa and Saurabh Kumar. Grofers offers products across a wide range of products in grocery, fruits and vegetables. It has a base present in almost 13 cities.
In December last year, Grofers co-founder Saurabh Kumar told, “We are aggressively growing our business and aiming to clock $1 Bn in revenue by the end of 2019 with a significant focus on our in-house brands in 2019. Our G-brands contribute 40% to our current revenue, and we plan to increase it to 60% in the coming years.”
The company had originally projected to go public in 2022, expects to turn valuable this financial year. Grofers’ Co-founder and CEO Albinder Dhindsa told PTI that “The company has already turned operationally successful in January 2020, and is on track to convert EBITDA and cash positive by the end of this year.”
Online grocery stores observed a rise in interest while countrywide lockdown restraints were in place. The entry of big players such as Amazon and Reliance in India’s online grocery market is also anticipated to drive up race in the sector.