Hyperlocal delivery startup Grofers in talks to raise fresh funds of $6-$70 Million according to sources after it seen a huge surge in demands during the national lockdown amid the Coronavirus pandemic outbreak.
This Softbank, Sequoia and Tiger Global backed online grocery startup has seen unpresented rise in the daily orders of Essential items in April and reported EBITDA level rise in margin as well for May.
Existing investors Softbank Vision Fund, Apoletto Asia, Sequoia Capital and Tiger Global are expected to back the startup in this round however the discussions are not final yet. This round of funding is expected at a valuation of $650 Million.
Grofers have added 2.5Lakhs of new Customers in April and are expected to add another set of 3.5L customers in May. With this, the company has doubled their Revenue and Margin.
They are expecting a GMV of $700 Million in 2020 and with that projection Grofers have added $25 Million to the ESOP pool to attract and retain best of their talents.
Company is in talks with external investors as well to raise funds but since it will take a bit longer time for now, existing investors are ready to plough additional funds.
On the other hand rival BigBasket have nearly doubled up their deliveries from 150,000 daily (pre lockdown) to 283,000 daily (post lockdown) and grofers reported
190,000 daily orders, against 100,000 before the Coronavirus crisis pandemic outbreak
CEO Albindar Dhindsa had earlier told ET in an interview that the they are projecting a growth of 50% in daily orders in the coming months. Hence, they are ramping up supplies from brands and manufacturing partners. They also have plans to push the sales of their private label to 60% from the existing 40%.
The shift in consumer behaviour for the online grocery shopping certainly take the volume to further new records and these startups are the major beneficiaries of this. While the safety and hygiene of the delivery boys shall always be a concern of the customers every company is now vouching for the same and wooing the buyers with their various campaigns and initiatives.
Company: Grofers
Founded: December 2013 | Gurugram
Employee: 3014
Founders: Albinder Dhindsa, Saurabh Kumar
