Softbank, Others Close to Investing $55-60m in Grofers

Softbank, Others Close to Investing -60m in Grofers

Japanese investment conglomerate SoftBank, along with other investors, is close to investing about $55-60 million in Grofers to help the latter build a war chest to fight the growing competition in the country’s e-grocery space.

According to a report in The Economic Times, SoftBank is expected to pump in about $30 million while existing investors Tiger Global and South Korean investment firm KTB Ventures are likely to contribute the rest. The Gurugram-based online grocer is also keen to get in a new investor to participate in the financing, the report added.

Its valuation is, however, expected to remain flat at $650-$700 million.

SoftBank Vision Fund invested $70 million in Grofers last August as part of a $200-million Series F round. Its other backers include Tiger Global and Sequoia Capital. In October last year, the company had raised an additional $20 million from Bennett Coleman Private Limited (BCCL), also known as Times Group.

Grofers, an online grocery delivery service founded in December 2013, operates in a $600-billion market with many competitors, including Walmart-controlled Flipkart and American e-commerce giant Amazon. With JioMart’s entry, the competition in the sector has further intensified.

The company had started making operational profit starting this year, and it expects to become cash positive by the end of 2020, PTI reported in July. The startup claims to offer over 800 products in various categories. Earlier this year, it also forayed into the milk business with the launch of its milk brand, G-Fresh Milk.

Grofers is looking to make a debut on the stock market by the end of next year.

South Africa Today


Read more at VolaNews