Grofers becomes a unicorn after Zomato reportedly invests US$ 120 million

On Tuesday, Grofers, a Gurugram-based grocery delivery start-up reportedly joined the unicorn club, post raising US$ 120 million from Zomato, a food delivery platform. The development has taken the valuation of Grofers to > US$ 1 billion.

Grofers refused to clarify on the report. The company stated, “Currently, we emphasise to do our best to help consumers at the time of pandemic. While we continue to develop technology that enables the grocery ecosystem to make goods more accessible and affordable for millions of Indian households.”

Zomato did not respond instantly on this matter.

In 2020, Zomato reportedly attempted to acquire Grofers, to expand its presence in the grocery delivery space.

According to a new report published by Motilal Oswal, a stock broking house, the online grocery market has registered ~ 30X growth over the last seven to eight years to reach US$ 3 billion.

The report mentions that India has ~ 154 million transacting households. Of which, online grocery solutions users stands at ~ 130 million, generating an addressable market of US$ 293 billion.

The news comes only a week after Mr. Saurabh Kumar, cofounder of Grofers announced his exit from the company. He will remain to be a board member and a shareholder in the company.

The company was founded in 2013 and so far, it has raised ~ US$ 662 million across equity and debt rounds. Its investors include Sequoia Capital India, Bennett Coleman and Co ltd., Trifecta Capital Advisors, Abu Dhabi Capital Group and SoftBank Vision Fund.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.