Onlince grocery delivery start-up Grofers India has received the government’s nod for foreign direct investment (FDI) to undertake retailing of food products, which are manufactured or produced in India, sources close to development told FE. The start-up which applied for FDI in September last year, at the time had an investment of about Rs3 crore. The company would have to spin off a new entity to start this business since 100% FDI is only applicable for food products manufactured or produced in India whereas currently Grofers sells other household products such as soap, shampoos, etc through its e-commerce channel. Last year three online commerce firms – Grofers, Amazon and Big Basket had applied seeking approval for FDI in food retail. It is expected that Amazon’s $500 million investment proposal in food retail, should also get a nod soon. Grofers last raised fresh fund in November 2015. At that time it received $120 million in fresh funds largely from Japan’s SoftBank. Other investors including Russian entrepreneur and venture capitalist Yuri Milner, Tiger Global and Sequoia Capital also participated in the round. Grofers India reported a loss of Rs225 crore on revenues of Rs14.3 crore in FY16.