Indian online grocery startup Grofers has raised $70 million from Japan’s SoftBank Vision Fund as part of the ongoing $200-million Series F round, according to the company’s filings with the Registrar of Companies (RoC) sourced by paper.vc.
At $70 million, Grofers’ valuation stands at $567.34 million, according to paper.vc.
The Masayoshi Son-led group had announced the funding round in May this year, which was joined by existing investors Tiger Global and Sequoia Capital, and new investor KTB Ventures. It is considered to be the biggest fundraising by an Indian online grocery startup till date. Its closest rival, BigBasket, recently closed a $150-million funding round led by Mirae Asset-Naver Asia Growth Fund, China’s Alibaba, and UK’s CDC Group.
In July, Grofers secured additional $10 million in financing from Abu Dhabi Capital Group (ADGC). According to Crunchbase, Grofers has raised a total of $531.8 million in funding while BigBasket has garnered $1 billion till date.
Grofers operates in a $600-billion market with many competitors, including Walmart Inc.-controlled Flipkart and American e-commerce giant Amazon. In the hyperlocal delivery space, it competes with the likes of Swiggy and Dunzo.
The grocery company has expanded its own range of brands over the last year and claims to have over 800 products spread across various categories such as staples and kitchen ingredients, FMCG products, personal hygiene products, furnishing items, etc. It also recently forayed into the milk business with the launch of its milk brand, G-Fresh Milk.
India’s grocery market is projected to grow at 55% per year through 2021, according to TechSci Research, making it the leading growth segment in online retail.