Online groceries and electronics delivery platform, Grofers, according to multiple sources, is raising in the order of more than $100 million from Japan’s Softbank, DST Global, Tiger Global and Sequoia. This is the first time Softbank, DST Global, Tiger Global and Sequoia are coming together to fuel the growth of Hyperlocal story in India.
Grofers might raise a sum as big as $200M and that is likely due to their new model. According to our sources, the online store is asking local dealers to fill up particular stocks and if they don’t sell it, Grofers will pay for it. The asset-model change is making investors invest more in the company.
In a conversation with Grofers, when asked about the funding received, they said, “We are still in talks and soon will release the information about the happenings.”
Hyperlocal Delivery Model
The hyperlocal startups have gained momentum in the nation now, when asked about their model, they said, “Grofers is a hyperlocal delivery service. We bring the neighbourhood stores closer to users. We provide a platform to the local merchants and help them to make the transition to online getting all the daily needs to your doorstep. Instead of competing with the local stores, we bring them visibility among users who are not reachable through offline channels. We don’t compete, we collaborate with the local stores.”
Grofers denied of keeping any inventory with them.They said, “We are a marketplace and we do not hold inventory. Our deliveries are managed through a strong network of delivery executives who are responsible for smooth delivery and execution.”
General Trend of Orders
“All the categories seem to have good potential to grow but groceries and food are the biggest segments by their nature of consumption and are needed the most by the broadest set of people. Also ever since the launch of our electronics category, the number of orders have grown six folds month over month as the assortment and reach increased to 26 cities. We have also entered kitchenware, sports & fitness, home & office needs amongst other categories,” said Aditi Khare, Manager Marketing Communications at Grofers.
Grofers is currently running in 26 major cities and is increasing by the day. With over a 2000 employees in past six months and over 1.4M downloads, the online grocery store is increasing on the both sides of the stick (demographically and financially).
Recently, American Donut food chain Dunkin’ Donuts joined hands with Grofers to deliver Donuts and special cakes with a shelf life of two months.
Grofers is likely to grow in demand and tap on its food & groceries section. Joining hands with Dunkin Donuts has shown that Grofers has interest in tapping the online food delivery too and might go-on entering Zomato’s forte.
Potent competitors PepperTap, recently raised $36M by Jasper Infotech (Snapdeal), SAIF Partners & Sequoia and are getting ready to take on Grofers.