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Last Updated : May 15, 2019 06:59 PM IST | Source: Moneycontrol.com

SoftBank leads $200 million investment in Grofers

Grofers also plans to go big on its private label offerings. The segment currently constitutes 45 percent of the total sales of the company.

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Online grocery firm Grofers has raised over $200 million in a round led by existing investor SoftBank Vision Fund. The round also saw participation from a new investor - KTB - a South Korean investment firm. Other existing investors such as Tiger Global and Sequoia Capital also participated in the round.

The company also plans to expand into new markets, continue to build its supply chain, warehousing infrastructure and private label product offerings.

"Primarily the investment will go into warehousing, especially in the southern markets like Bengaluru, Chennai and Hyderabad. We are tripling our warehousing capacity there and will also be expanding more around our profit centres like Delhi," Dhindsa told Moneycontrol.

Currently, the company has a total warehousing space of 2.5 million square feet. This will be expanded to around 3 million square feet.

Grofers also plans to go big on its private label offerings. The segment currently constitutes 45 percent of the total sales of the company.

"By the end of calendar year, we plan to cross 50 percent and by the next calendar year, we hope to be close to 60 percent," Dhindsa added.

Grofers last announced a $62 million fund raise, which was also led by SoftBank in March last year. The current round takes the overall funds raised by the company to $420 million.

The food and grocery market is one of the largest commerce categories in India, and is estimated to reach $869 billion in sales in 2023, a 70 percent increase from its 2018 forecast.

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First Published on May 15, 2019 03:36 pm
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