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Hyperlocal delivery service provider Grofers has raised series A funding of $10 million led by Tiger Global Management and returning investor Sequoia Capital, reports ET. In December last year, the startup had raised an undisclosed amount of seed funding from Sequoia Capital and Zomato founder Deepinder Goyal. Grofers’ app lets you buy groceries, bakery items, flowers and medicine supplies to have them delivered within 90 minutes in Delhi-NCR, Mumbai and Bangalore, the company claims.

Funding to expand, add employees:
Grofers’ AVP-Marketing Sharad Harjai told Medianama that operations were being scaled up in Bangalore: “As we add more categories to our services, we will be employing people over a period of time.” Grofers currently offers two kinds of services in Bangalore: B2B and B2C. “With B2B, we have bakeries and other merchants and with B2C, we plan to start operating in the first week of March,” said Harjai.

The funding will go towards establishing a presence in other cities, adding employees and improving existing technology. The company also plans to add other products including electrical appliances soon, as indicated by this TechCrunch report. Grofers claims it works with 250 vendors, processing 30,000 deliveries per month, out of which one fifth happen through the mobile app.

How it works:

Grofers was founded by IIT Bombay and Delhi graduates Saurabh Kumar and Albinder Dhindsa and is over a year old. It launched an Android app called Grofers On-Demand late last year where it has over 5000 downloads. It ties with over 150 local businesses to streamline delivery from order to fulfillment of delivery, currently employing ~140 delivery boys who pick up goods from the stations/stores and deliver them to specific localities. Grofers currently has 10 stations across Delhi-NCR, 6 in Mumbai with operations being set up in Bangalore, according to Harjai. Mid-way last year, YourStory reported that Grofers was catering to over 3000 orders per week. Taking care of delivery logistics is an application called Grofers Tracker which lets Grofers update, prioritise and manage payments.

Competition:

  • Bangalore-based Delyver.com, which raised over Rs 6.5 crore from an unnamed VC fund in the city, also connects offline retailers with customers in the neighbourhood and plans to expand to 20 cities by next year.
  • Mumbai-based startup incubation platform AntFarm said that it will be merging Meals on Wheels with its yet-to-be-launched grocery and essential products ordering platform Scootsy, earlier this month. The combined platform would deliver cakes & confectionaries, groceries, gifts & flowers and essential electronics like phone chargers and spike busters among others.
  • Gurgaon-based hyperlocal grocery service PepperTap raised an undisclosed amount in seed funding from Sequoia Capital earlier this week. The company said that the funding will be directed towards building a resilient foundation and expanding its orbit across Delhi NCR.
  • BigBasket, which delivers in Bangalore, Pune, Mumbai and Hyderabad, raised INR 200 crores late last year.
  • Godrej Group’s Nature’s Basket acquired Mumbai-based online grocery store Ekstop.com earlier this month.