Hyper local delivery startup Grofers, which is trying to bridge the gap between offline retail and mobile shoppers, has acquired a mobile-only grocery startup Mygreenbox. The details of the deal have not been disclosed yet.
Grofers says 60% of its business comes from the grocery vertical, hence the acquisition makes sense for it. “We are building depth in our grocery vertical through this acquisition.” says Grofers co-founder Saurabh Kumar.
Gurgaon based Mygreenbox was founded by Varun Khurana (CEO & Co-founder)and Prashant Jain (COO & Co-founder), and had raised Rs 1 crore in angel funding. It is operational only in Gurgaon at the moment and is competing with other grocery retail startups like BigBasket, LocalBanya, Peppertap and so on.
Both hyper local delivery and online grocery are hot trends in the digital ecosystem at present.
“Grocery is a $360 billion market just in India alone.” says Varun. The trend of online grocery retail started with above mentioned grocery startups attracting the investors’ attention, followed by offline players like Godrej Nature Fresh going online, and now the existing online marketplaces like Snapdeal, Amazon and Flipkart trying to get a piece of this pie.
On demand logistics provider, Grofers has raised $10.5 million in funding till date from Sequoia and Tiger Global. Tiger Global is also one of the biggest investors in Flipkart which, only yesterday, announced its plans of going hyper local in Bengaluru and even tied up with Dabbawalas in Mumbai to try a new logistics model. Owing to the need of faster and better deliveries, it might make sense for Flipkart to acquire Grofers.