Grofers becomes a unicorn after Zomato reportedly invests $120 million
- Zomato was reportedly looking to acquire Grofers last year, but the talks fell through.
- The deal values Grofers at a little over $1 billion, but the company has refused to comment on it.
- Last week, Grofer’s cofounder Saurabh Kumar had announced his exit from the company.
AdvertisementGurugram-based grocery delivery startup Grofers has reportedly entered the unicorn club, after raising $120 million from IPO-bound food delivery platform Zomato. The duo has reportedly signed a deal on Tuesday, valuing Grofers at a little over a billion dollars. A unicorn is a private company valued at or more than $1 billion.
The development was first reported by Moneycontrol, quoting sources it didn’t name.
Grofers refused to comment on the speculation. “Our focus at present is to do our best to serve consumers at this time of the country's need; while we continue to build technology that empowers the grocery ecosystem to make products more affordable and accessible for millions of Indian households,” the company told MoneyControl.
Zomato did not respond immediately when
Notably, Zomato reportedly tried to acquire Grofers last year, in order to expand its presence in the groceries delivery segment, but the talks fell through.
According to stock broking house Motilal Oswal’s latest report on the retail segment, the online grocery segment has grown about 30 times over the last seven to eight years to reach $3 billion.
The report notes that India has about 154 million transacting households. Of which, 130 million are already using online grocery solutions, creating an addressable market of $293 billion.
The development comes only a week after Grofers’ cofounder Saurabh Kumar announced his exit from the company. He will continue to be a shareholder and a board member in the eight year-old company.
Kumar had founded Grofers in 2013 along with
Grofers has, so far, raised close to $662 million across equity and debt rounds. Its investors include Sequoia Capital India, Trifecta Capital Advisors, SoftBank Vision Fund, Abu Dhabi Capital Group as well as Bennett Coleman and Co ltd.
One year of Chinese apps ban — Indian alternatives take over TikTok
PharmEasy opens up quicker public listing options with its acquisition of Thyrocare
China has decided to take global commodity bulls by their horns — to protect the profit margins of its small businesses
Popular on BI
- Elon Musk calls on all Twitter designers, engineers doing software to sit on his floor of HQ for 'dense and intense' work
- It’s not just Mercedes, even bank deposits are competing with equities
- A former Facebook exec says an employee at a 'large tech company' once complained to the CEO in an all-hands meeting about the quality of company toilet paper
- India will succeed in handling inflation better: Sitharaman
- India's GDP growth comes in at 6.3% in Q2: manufacturing, mining witness negative growth
- Dharmaj Crop Guard IPO subscribed by a whole 35.49 times on last day
- Sensex, Nifty50 rewrite all-time highs yet again – RIL, HDFC twins most active, ICICI Bank touches new 52-week high
- Bollywood films failing is a phase, our films will bounce back strongly: Kajol