On-demand online grocery delivery service startup Grofers has raised a massive $62 million funding from multinational conglomerate holding company Softbank. Softbank had invested in the firm earlier as well. The Japan-based company now boasts 35%-40% of total stake in the Gurgaon-based Grofers.
Interestingly, as per the report of Times of India, after the latest capital infusion, the valuation of Grofers fell by 20% to $300 million than their last times' valuation after their last funding in November 2015.
The company in a statement confirmed the participation of their other existing investors during the round that included Tiger Global as well as Russian tech billionaire Yuri Milner, owner of Apoletto Managers.
The company in the press release mentioned that they will use the funding in improving their supply chain, improve their private labels and will continue to improve their infrastructure and technology.
The firm has been going through some tough times as in January 2016; they had to close down their operations in 9 cities as they could not scale there even after spending a hefty amount in marketing and campaigning. A little later, they laid off a number of their employees as well.
IIT graduates Albinder Dhindsa and Saurabh Kumar had founded the company in 2013 which till date has raised $226.5 million funding from investors like Tiger Global Management, Sequoia Capital, SoftBank Group and Cyriac Roeding.
Earlier, one of their biggest rivals in the industry, BigBasket had bagged $300 million Series E round funding which was led by Alibaba. With the latest backing which Dhindsa feels is a vote of confidence and trust in the company, it will be interesting to see how Grofers turnaround things in their fight with BigBasket.
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