Hyperlocal delivery startup Grab has managed to secure $1.3 Mn (INR 9 Cr) funding from Maharashtra State Social Venture Fund, an investment division of SIDBI Venture Capital. As per the reports, the Mumbai based startup has issued 10 equity shares of Rs 10 each and 89,807 debentures to SIDBI.
This is not the first time that Grab has raised funds. It has so far managed to scoop up $2.3 million through multiple rounds of funding. What makes this particular funding round unique is the fact that this time Grab has managed to secure funds through a government based investment agency.
Grab was incorporated as last mile food delivery startup in 2012 by Pratish Sanghvi, Jignesh Patel, and Nishant Vohra. Although Grab has not exactly managed to make a splash such as its other worthy rivals like ShadowFax, Grofers and Swiggy, it claims to have achieved sizable tractions and also claims to serve some big clients. On its official website, the Mumbai based startup boosts high profile client list including Zomato, McDonald’s, Big Bazaar, RBL Bank, Pantaloons, Faasos, and Pizza Hut.
The food tech delivery space has emerged as a lucrative and highly promising industry over the years. The rising disposable income among the Indian middle class and increasing smartphone penetration is propelling huge demands for food delivery. Fulfilling this sporadic demand are the several new age startups like Grab and Swiggy. However, these startups will have to endure intense competition in the coming years as ride-hailing giants like Uber and Ola have already encroached in this lucrative space.
Besides, the online food delivery industry is also plagued with several problems. The biggest problem is its wafer-thin margins that has even forced many big boys in the industry to reduce headcounts and streamline its operations.