Hyperlocal express delivery startup Grofers is in talks with Japan's SoftBank to raise around $100 million, or Rs 630 crore, in a new financing round, people familiar with the matter told TOI. When closed, this would be the third fund-raise for Grofers this year, which counts Sequoia Capital, Tiger Global and DST Global's Yuri Milner as its investors.
The fresh funds would give Grofers ammunition to fight e-commerce biggies Flipkart, Snapdeal and Amazon, which are stepping on the gas with new offerings to tap the fast-growing grocery delivery space. Existing investors in Grofers, which has so far racked up $46 million in capital, are expected to participate in the new round. The fund-raise process is in final stages of completion, two people close to the development said.
When contacted, Albinder Dhindsa, co-founder & CEO of Grofers, said he did not have any comments to offer on the latest funding round, while a SoftBank spokesperson said, "We do not comment on speculation."
For SoftBank, this would be its fifth investment in India over the past year after Snapdeal, Ola, Housing and budget hotel aggregator platform Oyo Rooms. The Japanese telecom and internet giant typically picks up 20-30% stake in companies which are in mid-to-late stages.
Grofers is said to be registering an average of 18,000 orders per day, and was valued at $110 million in its series B round which closed in April this year. Its valuation is expected to double in the new round, sources said. Having started as a business-to-business delivery service, the two-year-old startup pivoted and became a consumer-facing business a year ago, after which it attracted investor interest
The fresh funds would give Grofers ammunition to fight e-commerce biggies Flipkart, Snapdeal and Amazon, which are stepping on the gas with new offerings to tap the fast-growing grocery delivery space. Existing investors in Grofers, which has so far racked up $46 million in capital, are expected to participate in the new round. The fund-raise process is in final stages of completion, two people close to the development said.
When contacted, Albinder Dhindsa, co-founder & CEO of Grofers, said he did not have any comments to offer on the latest funding round, while a SoftBank spokesperson said, "We do not comment on speculation."
For SoftBank, this would be its fifth investment in India over the past year after Snapdeal, Ola, Housing and budget hotel aggregator platform Oyo Rooms. The Japanese telecom and internet giant typically picks up 20-30% stake in companies which are in mid-to-late stages.
Grofers is said to be registering an average of 18,000 orders per day, and was valued at $110 million in its series B round which closed in April this year. Its valuation is expected to double in the new round, sources said. Having started as a business-to-business delivery service, the two-year-old startup pivoted and became a consumer-facing business a year ago, after which it attracted investor interest
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