Gurugram-based online grocery startup Grofers has raised a $200 Mn Series F funding round led by SoftBank Vision Fund. The company also raised capital from existing investors Tiger Global and Sequoia Capital as well as new investor KTB.
With the additional funding, Grofers will seek to expand into new markets, bringing its services closer to hundreds of millions of Indian consumers. Grofers will also continue to build its supply chain, warehousing infrastructure, and private label product offerings, ensuring a steadily increasing range of products for customers, it said in a statement.
Grofers, founded by IITians Saurabh Kumar and Albinder Dhindsa, said it clocked annual revenues of $400 million after pruning its business and focusing on a few core markets and categories. In the past year or so, it has pivoted its model away from being an on-demand, hyperlocal grocery delivery player to a full-stack platform targeting value-conscious customers.
Speaking on the funding, Albinder Dhindsa, Co-Founder and CEO of Grofers, said, “We are building Grofers for the millions of Indians who cannot buy groceries at low prices due to multiple middlemen and the absence of large aggregators. This latest investment will help scale the company to ensure many more customers can access the best quality products at the best prices.”
“Grofers is the leader in making India’s grocery industry more efficient, affordable, and accessible to the mass market urban customer. The company has iterated its way to great success with regard to its technology platform, extensive partner network, and efficient supply chain. We are thrilled to partner with them to drive further innovation in the online grocery category for the mass market,” said Vikas J Parekh, Partner at SoftBank Investment Advisers.
Commenting on the investment, Scott Shleifer, Partner at Tiger Global Management, added, “We are pleased to continue supporting Grofers, which is helping transform the retail grocery market in India. The company’s strong team and innovative approach has put Grofers on a solid path to gain share in this large, growing market.”
This month, Grofers had told PTI that it was pursuing profitability by consolidating its presence in the cities where it has a presence in, as well as focusing on doubling its sales to Rs 5,000 crore by FY20. The company also said it was gearing up to hit the capital market with an initial public offer (IPO) within the next three years.
Goldman Sachs report gas forecasted that the Indian online grocery market is set to reach $40 Mn (INR 270 Cr) by FY19, growing at a CAGR of 62% from 2016 to 2022. With this potential in the market and promising entrepreneurs, the investment in Grofers adds further momentum to the grocery sector.