Online grocery platform Grofers is in the last stages of talks for raising $50-60 million from its largest investor SoftBank Vision Fund and two other investors, according to a report in the Economic Times (ET). The Gurugram-based online grocer is likely to be valued at $650-700 million after the current financing round, similar to a previous fundraising, a source told ET.
SoftBank is the largest investor in Grofers with around 46% stake. Tiger Global and South Korean investment firm KTB Ventures, who are the existing investors, are likely to pump in about $30 million.
Grofers CEO Albinder Dhindsa did not comment on the fundraising plan to ET, while a SoftBank spokesperson told the paper that the company does not comment on speculation.
A Grofers spokesperson told ET that the company has grown its topline 80% compared to pre-COVID levels and has recorded Rs 2,600 crore in gross sales since April, adding that the company is also looking at an Initial Public Offering (IPO). The company had earlier stated that it has acquired 18 lakh new customers since the lockdown.
This comes at a time when India‚Äôs largest e-grocer BigBasket is reportedly in advanced discussions with the Tata Group to divest a majority stake. The Bengaluru-based company may sell around 50% stake for nearly $1 billion, if the deal goes through.
With major players such as Reliance JioMart, Amazon India, Flipkart and Swiggy entering the space, the total size of the e-grocery market in the country is likely to grow from $1.9 billion in 2019 to $3 billion by year-end, as per a report by consulting firm RedSeer and BigBasket. The online grocery business is expected to touch $18.2 billion by 2024 at an annual growth rate (CAGR) of 57%, the report says.