SoftBank-backed Grofers raises $5.8 mn from Singapore parent

SoftBank-backed Grofers raises $5.8 mn from Singapore parent
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18 Mar, 2020

Grofers India, the Gurugram-based company that owns and operates an eponymous online grocery marketplace, has raised $5.8 million from its Singapore-based parent company Grofers International.

The startup issued 330 equity shares, each at a rate of Rs 13,05,293, totalling the value of the investment to about Rs 43.07 crore or $5.8 million, the Ministry of Corporate Affairs filings showed.

Grofer India endured heavy cash burn, according to its profit and loss statement for the financial year ended March 2019. It showed losses widening nearly two-fold year-on-year due to burgeoning expenses, such as discounts.

Read: SoftBank-backed Grofers achieves break-even in Delhi NCR, Kolkata

Grofers had last raised $20 million from Mumbai headquartered media conglomerate Bennett Coleman & Co via a warrant issue in November. Around the same time, it received $44.8 million from its parent. In July, it reportedly got a top-up of $10 million from the Abu Dhabi Capital Group. In May, it raised over $200 million in a funding round led by returning investor SoftBank Group.

In the heavily-funded segment, Grofers and its rival BigBasket are undisputed leaders, towering over horizontal players such as Flipkart and Amazon Pantry.

Read: What Flipkart is up against in India’s competitive hyperlocal grocery market

Supermarket Grocery Supplies, the Bengaluru headquartered company that owns Alibaba-backed BigBasket, also widened its losses nearly two-fold in the financial year ended March 2019.

In March last year, BigBasket raised $150 million in a funding round led by South Korean firm Mirae Asset. In the report, TechCircle had estimated that the investment would increase the company’s post-money valuation to over $2 billion.