Indian online grocery startup, Grofers has raised $200 million in a fresh funding led by Masayoshi Son’s SoftBank Vision Fund (SVF), pushing the Gurgaon-based company’s valuation to almost $1 billion. Existing investors Tiger Global and Sequoia Capital along with new investor KTB also contributed in the funding round, reported Bloomberg.
The funding comes with just two months after, Japan’s SVF had invested $60 million in Grofers funding in March, when Tiger Global and Sequoia Capital also contributed to that round.
With latest fund infusion, Grofers has raised a total of about $500 Mn in funding over 8 rounds, including this one. The company said it’s prioritizing profit given the sliver of market share served by online merchants.
Albinder Dhindsa, co-founder and CEO, Grofers, said in statement, “Grofers had a top line of $400 million and grew 8X in the last two years. Grofers would become India’s largest online grocer this quarter.”
Grofers faces fierce competition from both local and global players in India’s $600 billion e-grocery market. Last month, Alibaba-backed online grocer BigBasket raised $40 million from CDC Group, the UK government’s development finance institution. This was followed by Rs 20 crore venture debt funding of MilkBasket, which came from Flipkart co-founder Sachin Bansal’s BAC Acquisitions. Milkbasket is an online grocery and milk delivery startup, which is also headquartered in Gurgaon.
Besides Bigbasket, Walmart-owned Flipkart, Amazon.com Inc. also compete with Grofers. Both Walmart and Amazon have been investing heavily in their Indian business. Last year, Alibaba led a $300 million investment in BigBasket, pushing its valuation to $950 million.
The share of India’s online grocery market in Asia currently stands at 0.05% and is expected to touch 0.6% by 2022, according to international research organisation IGD.
Some of the major companies that are currently working in the online grocery market in India are SoCoMo Technologies Pvt. Ltd., Grofers India Pvt. Ltd., Town Essentials Pvt Ltd., Nuvo Logistics Private Limited, MN&C Supply Links Retail Pvt Ltd., BigBasket India Pvt. Ltd., Aaram Shop Pvt. Ltd., Natures Basket Limited, Local Banya Pvt. Ltd., Supermarket Grocery Supplies Pvt. Ltd., Fiora Hypermarket Limited, Godrej Nature’s Basket Ltd., Ekstop Pvt. Ltd., MyGrahak Shopping Online Limited, Jiffstore Software Labs Pvt. Ltd., PepperTap Ltd., SRS E-Retail Limited, Reliance Retail Pvt. Ltd., ZopNow Retail Pvt. Ltd.