Grofers raises $62 million from SoftBank, others 

Online grocery delivery firm Grofers on Friday announced a fund raise of USD 62 million in a round led by the existing investor SoftBank Group.

Other investors such as Tiger Global and Apoletto Asia also participated in the funding round.

The funding takes the total funds raised by the company to USD 226.5 million.

The fund will be utilised by Grofers to further ramp up its private label products and enhance supply chain. A significant amount of investment will go towards building infrastructure and technology and efficient supply chain management to achieve deeper penetration in existing Grofers cities.

Moneycontrol had reported in January that Grofers would raise a next round to further boost the private label with its entry into segments such as home care.

This fresh round by our existing investors is a vote of confidence and trust in the turnaround at Grofers. We took some hard decisions to fix parts of the business that were not scaling well. Our efforts have clearly contributed in making sure we have a clear path to profitability as well as the largest market share in the online grocery segment; having grown four-fold in the last one year for monthly sales in excess of Rs 100 crore," AlbinderDhindsa, co-Founder and CEO said in a statement.

It runs three private label categories called Savemore, FreshBerry and Best Value.

While Savemore is for home care items such as cleaners, soap, phenyl and towels, FreshBerry is for fruits and vegetable and Best Value for staples.

The company currently gets about  30 percent of its sales, from its private label brands in the food category including Freshberry and Best Value. It aims to double the sales of private label category to Rs 60 crore per month by December, this year.