During this lockdown, people have switched from conventional ways to digital mediums. Due to social distancing, there is a surge in online grocery shopping with more Indians shopping essentials. Grofers is on track to rack up $60-$70 million in new funding, sources said.
Major investors like SoftBank and others including Apoletto Asia, Capital, and Tiger Global are expected to invest and back the online retailer. The movement is in discussion and not yet finalized. Other than this, it is projecting Ebdita-level profitability in May.
Grofers always wanted to increase the cash reserves, said sources. It expects to clock more than $700 million in annualized gross merchandise value or GMV for this year or what is now as the company’s annual run rate. The funding comes at a time when the business graph is surging up and sales have been doubled. The company has been able to bring in about 250,000 new customers in April with a number in increasing order 350,000 in May.
The company is in talks with external investors as well but not yet finalized the terms. Their existing shareholder is set to invest and plough additional funds. Grofers shared the update stating that it’s business is back to normal in majorly all the cities except Pune and Mumbai and it is even serving more households and new customers across.
Grofers is enhancing its employee stock ownership plan pool by pumping in another $25 million to attract and retain fresh talent.
The unprecedented hike has been observed beside the shutting down of the warehouse in the initial phase of lockdown and labour shortage.