Published on : Nov 26, 2015
Grofers, a Gurgaon-based start-up stated that it has raised $120 million with its new efforts. The hyperlocal delivery business mainly gathered its funds from SoftBank Corp., Japan. The co-founder and chief executive Albinder Dhindsa stated that Yuri Milner, Russian entrepreneur and venture capitalist and Sequoia Capital and Tiger Global, both existing investors were present at the fund raising. With this deal, the company’s valuation is likely to be just below the $400 million mark.
The fresh fund raising comes exactly within a year for Grofers, who raised $35 million in April and $10 million in February from existing investors Tiger Global Management and Sequoia Capital. According to a source, Softbank is likely to buy a stake of 20% to 30% in Grofers.
Presently, Grofers delivers groceries in about 25 cities and registers about 30,000 orders per day. The fast-growing company has all the neighboring stores in its list and employs about 4,000 people. The company was started by Dhindsa and Saurabh Kumar in 2013. The news comes as a pleasant surprise as the sentiment to invest in start-ups seems to be slowing down.
Several hyperlocal deliver players are winning good investments. For instance, Instacart, a US-based company got an investment worth $2 billion in January. This investment came after it had already received $220 million from Dragoneer Investment Group, Thrive Capital and Valiant Capital, Comcast Ventures, Kleiner Perkins Caufield and Byers and others
Some of the competitors for Grofers are PepperTap, TinyOwl, and Swiggy. All of these start-ups are aimed towards bridging the gap between customers, supermarkets, restaurants through mobile apps.