Online grocery firm Grofers is in final negotiations to gather $120-150 million from Japanese investor SoftBank's Vision Fund. It may also see Metro AG, a German retail group participate in the deal with a smaller amount.
Grofers had raised Rs 400 crore (around $62 million) from SoftBank In March. The firm may receive further funds at a valuation of $500 million, reported The Economic Times. SoftBank's move to further fund Grofers puts a stay on rumours of the merger with a bigger rival BigBasket. SoftBank's Vision Fund will pump from 60 to 70 per cent of the capital, while Metro AG, which operates 27 wholesale stores in India, may fund $30 million. Tiger Global, Russian billionaire Yuri Milner, and Sequoia Capital are among existing investors that may participate, increasing the valuation of Grofers at pre-investment to $500 million.
SoftBank through its Vision Fund may acquire more than 40 per cent shares of Grofers, leaving Tiger Global as the second-largest stockholder. Other significant investors are Sequoia and Milner's Apoletto.
Grofers has seen steady growth by focusing on select categories. It claims to achieve 46,000 orders every day of approx Rs 1,300 per order. Private brands that offer better profit margins contribute nearly 28 per cent of overall sales (excluding vegetables and fruits).
(Edited By Vivek Dubey)