The race for on-demand delivery services in India is on, and today one of the bigger startups in the market has picked up a large cash injection as it goes for pole position. Grofers, an Instacart-style app that links up with local, offline merchants to delivery groceries, medicine, flowers, and other daily items to customers, has raised $120 million led by new investor SoftBank. The Series C round also included existing backers DSTâ€™s Apoletto Managers, Tiger Global and Instacart investor Sequoia Capital.
Grofer CEO and co-founder Albinder Dhindsa and SoftBank have both directly confirmed the round and investors to TechCrunch. Grofers has been on a fundraising tear to aid its expansion. This is the third round raised by the company this year alone, after earlier rounds of $10 million and $35 million. It brings the total to just under $166 million including an earlier seed round. Japanâ€™s Softbank has been pouring hundreds of millions of dollars of investment into Indian startups like Ola, Snapdeal and more, and as part of this round it will take a seat on Grofersâ€™ board.
The Times of India, which first reported the raise, cites sources that say Grofers now has a post-money valuation of over $300 million. Dhindsa, who cofounded the company with Saurabh Kumar, would not comment on the valuation and said he hadnâ€™t even wanted to make this fundraiser public. â€œVery honestly itâ€™s just a distraction for the team,â€ he told TechCrunch. â€œWeâ€™re in the middle of trying to build a business.â€ Today, that business is currently live in 26 cities in India, with some 1.6 million downloads of the mobile apps that are used to order its services.