When looking for funding, don’t just look for cash. Look for the right people – Jodie Fox
Correct funding has helped realize many dreams for a number of new entrepreneurs and startups. According to the latest news, hyperlocal delivery service Grofers has raised $120 Million in a Series C round of funding. The round was led by Japan’s SoftBank and the other participants included Yuri Milner, Tiger Global, Sequoia Capital and Apoletto Managers. Close on the heels of raising $35 Million in April, the company closed this recent round of funding. According to undisclosed sources, SoftBank will be taking over a 20 percent to 30 percent stake in Grofers. Grofers have already taken giant strides in the hyperlocal delivery sector. Since springing into action in the year 2013, the company has carved out a niche for them in the industry. A company helmed by Saurabh Kumar and Albinder Dhindsa offers on-demand service and hyperlocal logistics services to the local businesses in India. Currently, operating in 25 cities, Grofers cater to more than 30,000 orders per day. And, with an employee strength of approximately 4,000 people, the company is known for its rapid delivery. Looking at the latest developments, hyperlocal delivery startups having been the cynosure of the eyes of the investors in the past couple of years. Other than Grofers, Instacart has also attracted a significant amount of funding from the investors. On the other hand, Snapdeal also picked up a stake in PepperTap this year. The company will be using the funding to bring more local offline merchants online. Other hyperlocal delivery players have already failed to do the same in the past. Other pure-play competitors in the on-demand delivery space include PepperTap (which is also backed by Sequoia and currently focuses only on groceries).
Grofers offer some unique features to businesses without any additional cost. Many businesses have been benefiting from its inventory management system. According to Grofers CEO & Co-founder Albinder Dhindsa, a part of the funding will be used to improve the last-mile delivery infrastructure of the company. Speaking about the funding, Mr. Dhindsa said, “We are happy to welcome SoftBank on board as a partner as we try to build a marketplace for consumable products. Grofers currently supports over 10,000 small merchants in selling locally and we hope that with the additional capital, we will be able to invest in building this ecosystem further.”