Softbank leads series F round | Other investors include KTB Ventures, Tiger Global and Sequoia Capital
SoftBank-led funding of $220 million in its series F round funding will help Indian online grocery startup Grofers to expand in a quickly consolidating segment.
“We are clear about our target audience. It is going to be middle India that goes after planned purchases and low-priced offerings.” said Albinder Dhindsa, Chief Executive, Grofers.
- Grofers achieved a successful series F round for $220 million led by SoftBank Vision Fund along with Korean investment firm KTB Ventures.
- Existing investors Tiger Global and Sequoia Capital were also part of the round and increase their share in the startup.
- The amount is one of the biggest raised in a single round of funding in the Indian online grocery sector.
- This investment will be put into expanding the company’s supply chain operations.
- Funding puts Grofers at power with biggest rival, Alibaba-backed Big Basket which received $150 million fresh funds a few weeks ago.
With both big players receiving massive funding boosts in a bid to outpace the other, the battle in the segment is set to intensify. The segment is also hotting up with the entry of e-commerce titans Amazon and Flipkart.
Grofers ventured out as a hyperlocal grocery startup in 2013 before transitioning to a warehouse-based model in recent years. But its biggest drawback against rival Big Basket is that Grofers currently isn’t into fresh produce or same-day deliveries.
Grofer’s big bet – Private labels
The startup has recently shifted its focus to advancing private labels among its customers. Roughly half of the company’s earnings are from private labels. Grofers claims this number is set to increase further.
This shift in model has enabled the startup to gain traction in the market. As per Dhindsa, the company has already achieved profitability in the Delhi sector and is projected to reach overall profitability by the end of 2021.