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Hyper local Delivery company Grofers shuts down in 9 cities

grofers

Hyper local startup Grofers has joined the bandwagon of startups firing people. It has fired employees across 9 cites and Some employees were offered roles in operating cities.
9 cities that are shut down – Bhopal, Bhubaneswar, Coimbatore, Kochi, Ludhiana, Mysuru, Nashik, Rajkot and Visakhapatnam.
17 cities that are operating– Agra, Ahmedabad, Bangalore, Chennai, Chandigarh, Hyderabad, Indore, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai, Delhi – NCR, Nagpur, Pune, Surat and Vadodara.

 In November 2015, Grofers raised (INR 780 Cr) in a funding round led by Japan’s SoftBank Corp. The round also saw participation from its existing investors Tiger Global and Sequoia Capital. Apoletto Managers, a personal fund managed by DST Global’s partners, also participated in this round.

Last year start up India has seen many funded companies shutdown in hyper local space especially localbanya. Raising funds from investors has become even more difficult than ever in this space.
Hyper local companies work on negative margins and each deliver makes you lose money. Though some companies survive for now on big cash they are holding, unless they have sustainable game plan they are not going to hit the long road.
This move from Grofers would have come after pressure from its prime investor soft bank which also pushed its portfolio company housing.com to fire people last year.
Its is not very clear on how many employees got fired so far, But continuous firing of employees is making it difficult to attract talent for startups.

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3 Comments

3 Comments

  1. Pingback: Another hyperlocal app LazyLad closes shop - IndianCEO

  2. Pingback: 100% YOY growth startup Sun Telematic gets funded - IndianCEO

  3. Pingback: Grofers gets legal notice for revoking job offers - IndianCEO

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