A unit of Abu Dhabi Capital Group (ADCG) has invested about $10 million in Grofers, the Indian online grocery start-up, further evidence of the growing appetite by Middle East-based investors to fund Indian start-ups and e-commerce companies.
Capital Investment LLC, part of the Abu Dhabi-based private institutional investment house ADCG, has invested $9.99 million to acquire 191,688 shares in Grofers, according to regulatory filings made by the Indian start-up, sourced business intelligence tracking firm paper v.c.
The ADCG arm concluded the investment deal with Grocers last week, as part of the latest round of fund raising by the Indian online grocery start up. Capital Investment LLC has been allotted class F shares in Grofers.
Founded by IIT graduates Albinder Dhindsa and Saurabh Kumar in 2013, Grofers offers products across categories such as grocery, fruits and vegetables. It currently operates in 13 cities across India.
According to industry sources, Grofers is to utilise the fresh funds to expand into new markets, besides beefing up its supply chain, warehousing infrastructure and private label product offerings.
The Delhi-NCR-based Grofers has raised about $200 million in its Series F funding round from Softbank Vision Fund in May this year.
Besides Softbank Vision Fund, existing investors such as Tiger Global and Sequoia Capital have also participated in the May round of fundraising by the Delhi-NCR-based Grofer.
Softbank Vision Fund has significant investments by Saudi Arabia-based investors.
Abu Dhabi Capital Group, a large investment company that has investments across various asset classes, industries and geographies, currently manages a diversified portfolio in global listed equities, fixed income and alternative investments.
ADCG also has substantial private equity investments and real estate spreading across many sectors. It could not, however, be ascertained whether the investment in Grofers is ADCG’s first investment in an Indian ecommerce start-up.
Arabian Business has contacted ADCG comment.
ADCG also has partners in North America, Europe and several emerging markets, according to information provided on the company site.
Last month, Samih Toukan, Samih Abdel Rahman and Hussam Khoury, the co- founders of the Dubai-based start-up investment firm Jabbar Internet Group, has invested $780,270 in ANI Technologies, the parent company of the India-based cab hailing company Ola Cabs.For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.