Hyperlocal delivery startup Grofers India has become the first company to apply to the industry ministry to raise the foreign direct investment under the recently-liberalised food retail policy.
Even as some of the global majors such as Walmart continue to weigh their options, Grofers, plans to raise funds through its parent firm based in Singapore – Grofers International Pvt Ltd.
As per the department of industry policy and promotion website, Grofers submitted its application on August 17, seeking nod for retailing of food products manufactured in the country.
As per the policy announcement in June, 100% FDI under government approval route for trading, including via e-commerce, in respect of food products manufactured or produced in India, has been permitted.
“Most of the grocery startups, including Grofers, sell non-food items as well. But, since the policy allows retailing of just the food products, Grofers has sought funding for a separate business entity,” sources said. Grofers intends to bring in ₹10 lakh in the first tranche , and might later on raise the amount.
When contacted, Grofers co-founder refused to comment.