Gurugram-based online grocery delivery startup Grofers has raised an additional ₹70 crores in the existing funding round from Abu Dhabi-based Capital Investment, an investment entity by Abu Dhabi Investment Group. The Softbank-backed firm issued 1.9 lakh series F shares at the same valuation as previous investments i.e ₹3,479 crores.
The tranche is a part of ₹1,400 crores Series F round that the startup announced in May this year out of which only ₹910 crores have been raised through its Singapore-based holding company. This fresh investment is preceded by Softbank’s ₹420 crores investment in the firm in February this year.
Grofers will deploy the funds for expansion and market penetration. The startup initiated its operations with a grocery retailing model and gradually shifted to a pure-play private label business model. The new model is in line to keep up with its competitors like BigBasket which provides on-demand deliveries.
Grofers has tied up with several Kirana stores to turn them into Grofers’ Branded Stores. The startup also sells in categories like kitchen utensils and cosmetics besides groceries and FMCG products. The startup reported total revenue of ₹53.4 crores in FY18