Grofers might raise $55-$60 million from its investors
Grofers has almost finalized to raise $55-$60 million from the Japanese conglomerate SoftBank and two other existing investors. From what we have learned, SoftBank Vision Fund is expected to invest around $30 million, South Korean investment firm KTB Ventures is likely to pump in about $30 million, and the rest of the capital will come from other internal investors.
The financing round might value the Gurugram-based online grocer at $650-$700 million.
SoftBank holds about 46% stakes of the company making it one of the largest investors for Grofers.
Albinder Dhindsa, the co-founder and CEO of Grofers did not comment on its fundraising plan rumours. A SoftBank spokesperson said also said, “We do not comment on speculation.”
“Grofers has grown its topline 80% compared to pre-COVID-19 levels and has clocked Rs 2,600 crore in gross sales since April,” a company spokesperson said. The company is also profitable on every order and is exploring an Initial Public Offering, the spokesperson added.
Grofers is India’s largest low price online supermarket in the grocery space. The company uses its in-house technology platform to manage a network of over 5,000 partner stores that enable the company to run a fast and lean supply chain – from manufacturers straight to customers in 27+ cities namely Agra, Ahmedabad, Aligarh, Allahabad, Asansol, Bengaluru, Bhiwadi, Chandigarh, Chennai, Delhi, Durgapur, Faridabad, Guwahati, Hapur, HR-NCR, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Lucknow, Meerut, Modinagar, Moradabad, Mumbai, Panipat, Pune, Rohtak, Sonipat, UP-NCR, Vadodara, and Zirakpur.
Grofers utilizes its efficient supply chain to deliver over 25 million products to customers every month. A majority of these products belong to the company’s 8 house brands namely Grofers Happy Day, Grofers Happy Home, Grofers Mothers choice, Grofers Happy Baby, G Fresh, O’range, and budget brands Savemore and Havemore.
The online grocery segment witnessed substantial growth during the lockdown in the first quarter of the current financial year, and growth in the segment has sustained even as the shelter-at-home rules were relaxed.