Grofers gets $200mn from SoftBank, others
Grofers India Pvt. Ltd has raised $200 million (Rs 1,406 crore) in a new funding round led by SoftBank Vision Fund, marking a turnaround in its fortunes three years after it scaled down operations and sacked some employees.
The capital will help the Gurugram-based online grocer fight off competition from bigger rival BigBasket, which raised $150 million earlier this year from South Korea’s Mirae Asset, British investor CDC Group Plc and China’s Alibaba Group. Grofers and BigBasket also compete with Walmart-owned Flipkart and Amazon.com Inc. in the online grocery delivery market.
Grofers said in a statement that new investor South Korea-based KTB Ventures, as well as existing investors Tiger Global Management and Sequoia Capital, also put money in the Series F funding round.
Albinder Dhindsa, Co-founder and CEO, Grofers, said the company will use the capital to set up operations in new cities.
Separately, explaining the rationale behind the fresh capital infusion into Grofers, SoftBank Investment Advisers partner Vikas J Parekh said the online grocer had a strong partner network and supply chain.
Grofers, founded by Albinder Dhindsa and Saurabh Kumar, began operations in 2014. It expanded rapidly in initial years and raised more than $150 million from the likes of SoftBank, Tiger Global, Sequoia and other investors.