SoftBank led the latest round of funding of e-grocer Grofers, with a total of Rs.400 crore invested into the company. The other investors in the round were Apoletto Asia and Tiger Global.
This new round of funding takes the total investment in Grofers up to $226.5 million, even as it looks to compete with rival BigBasket, which earlier this year raised around $300 million in a round of funding led by Alibaba.
Established in 2013, Grofers will utilise this investment to improve its supply chain. It will aim to capitalise on existing markets, improving its warehousing capacity which currently stands at around 7.5 lakh square feet. It will also use this amount to strengthen its existing technology, in addition to creating private labels.
Grofers currently delivers around 25,000 orders daily, with each order averaging around Rs.1,400. While it has established itself as the market leader in North India, it is yet to taste the same success in other markets.
The e-grocery segment saw a number of players like PepperTap, Local Banya and AskMeBazaar failing to stay afloat over the last three years. Given the government’s decision to allow 100 per cent FDI in food-only retail, Grofers is aiming to capitalise on this, concentrating on private labels.
Experts estimate the online grocery segment to grow by over 30 per cent this year, with it likely to be valued at $1 billion. Grofers, which currently has a presence in 25 cities could look at doubling its operations following this investment.