With monthly gross sales likely to touch Rs 100 crore, SoftBank-backed online grocery retailer Grofers, which recently moved towards offline stores across Delhi-NCR, is looking for a possible capital infusion of up to Rs 800 crore from existing investor SoftBank and Chinese internet giant Tencent . SoftBank is likely to bulk up its shareholding in Grofers, valuing the company at 20-30% lower than the $400-million valuation it fetched in 2015.

Competing with BigBasket

Grofers is now competing with BigBasket, which recently got on board Alibaba and Paytm Mall in a new $200-million funding after engaging in talks with for many months.

SoftBank’s interest in pumping fresh money into Grofers in what is possibly a down round where a company raises capital at a lower valuation compared to its previous round — comes after it explored raising strategic capital from Amazon.

Flipkart Acquiring Grofers

There has also been speculation of Flipkart acquiring Grofers, as both have common investors in SoftBank and Tiger Global, which collectively hold more than 40% in the e-grocer. Venture fund Sequoia Capital, which recently planned to raise $5 billion venture fund is its earliest institutional backer.

Grofers is closing in on Big Basket

“Grofers is closing in on Big Basket on the delivery front as they have exited the express delivery format.” said an investor privy to Grofers’ financials. Big Basket is expected to be clocking around Rs 120 crore in monthly sales, inclusive of about 30% in express deliveries.