Gurgaon based hyper-local express delivery startup, Grofers is in talks with Japan’s Softbank to raise fresh round of funding. The reports have it that Softbank might provide a funding of Rs 650 crores to Grofers.
Fresh funding will enable the delivery startup to come in the league of other e-commerce giants like Flipkart, Snapdeal and Amzaon and compete with them. App based cab aggregator; Ola is also likely to tap the grocery delivery market with its new offerings. The company currently shares the market space with competitors like BigBasket, LocalBanya and PepperTap.
If the deal works out, it would lead to a third round of funding for Grofers this year and would also increase the company valuation by ten-fold. For Softbank, this would be this would be its fifth investment in India after the likes of Snapdeal, Ola, Housing.com and Oyo rooms.
With the customer across 25 cities Grofers has been giving tough competition to other grocers like BigBasket and PepperTap. Earlier this year, the company raised $36 million from India based Sequoia Capital and New York based Tiger Global.
The company was founded by two IIT graduates, Albinder Dhindsa and Saurabh Kumar in 2013 and has been attracting the interests of investors from across the globe.