Grofers raises $60 million, now valued at $425 million

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Updated: March 1, 2019 7:13:11 AM

The investment is part of the Gurgaon-based firm’s new Series F financing round. Existing backers US-based Tiger Global Management and venture capital firm Sequoia Capital also participated in this round.

While SoftBank invested .49 million in the company, Tiger Global poured .99 million into Grofers and Sequoia Capital injected .99 million in the firm.

Online supermarket Grofers has raised close to $60 million in fresh funding led by SoftBank Vision Fund, valuing the company at an estimated $424.84 million, according to business signals platform paper.vc.

The investment is part of the Gurgaon-based firm’s new Series F financing round. Existing backers US-based Tiger Global Management and venture capital firm Sequoia Capital also participated in this round.

While SoftBank invested $37.49 million in the company, Tiger Global poured $19.99 million into Grofers and Sequoia Capital injected $1.99 million in the firm.

After this round of financing, Grofers’ valuation is estimated at $424.84 million, estimates paper.vc. Grofers has so far raised over $300 million, according to data from Crunchbase. Grofers did not respond to FE’s queries.

In March last year, Grofers had raised around $62 million in funding led by SoftBank. The financing was part of Series E.
The fund raise comes at a time when the company is expanding into the fast-moving consumer goods segment. Analysts say the online FMCG segment has the potential to grow given its low penetration at present.

Grofers, which was earlier a pure hyperlocal and shifted to becoming an online grocer with an inventory-led model, is banking on its FMCG private labels to drive its second phase of growth.

Founder Saurabh Kumar had told FE in an earlier interview the company’s strategy is to make cheaper consumer goods available to the masses. “There are logistics and storage costs involved in transporting goods from the manufacturers to the wholesaler and then to the retailer. All of that goes away in our case,” Kumar had said.

The competition in the e-grocery space is intensifying with the launch of online food delivery platform Swiggy’s on-demand service, Swiggy Stores. Swiggy will cater to consumers’ daily needs by partnering with offline stores.

Grofers narrowed its losses for the year to March, 2018 to Rs 258.30 crore from losses of Rs 268.32 crore posted in FY17, data sourced from business intelligence platform Tofler showed. Revenue from operations jumped 125% to Rs 29.83 crore in FY18 from Rs 13.23 crore reported in the previous year, the data showed. Operating losses fell to Rs 88 crore from Rs 129 crore.

Rival BigBasket’s revenue from operations stood at Rs 1,583.15 crore in FY18 against revenue of Rs 1,176.66 crore recorded in FY17.

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