I’ve known @skgrofers for 14 years and I’ve spent the last 8 years building @grofers with him. Today, SK is moving… https://t.co/V0tbLdPvZB — Albinder Dhindsa (@albinder) 1624000317000
Sent this letter to my team @Grofers. It has been an amazing 8 years building grofers with @albinder. Forever grate… https://t.co/WwUnSUfHUt
— Saurabh Kumar (@skgrofers) 1624000186000
Kumar’s exit from Grofers comes at a time when IPO-bound Zomato is nearing a $100 million investment in the online grocery, according to an ET report. The investment is likely part of a larger financing round and may value the online grocery firm at around $1 billion, sources had previously told ET. Kumar currently owns a 3.5% stake in the firm.
Grofers, which was looking to list on the tech-heavy Nasdaq in the US through a Cantor Fitzgerald blank-cheque firm, is also expected to scrap the IPO plan and continue to remain private, a person in the know had told ET last month.
The development also comes amid increased competition and a massive surge in demand on the back of the Covid-19 second wave. Last month, Tata Digital had announced a 64% stake purchase in grocery e-tailer BigBasket, in one of the largest M&A deals in India’s digital sector. Other large players in the space include Reliance JioMart, Amazon India and Walmart-owned Flipkart, all of whom have deep pockets and are ramping up their operations in the country.