Indian online food grocer Grofers has received governmental approval to retail food products through brick-and-mortar stores and online platforms across the country.

The grocer’s proposal to implement fresh foreign direct investment (FDI) has been approved by India's Department of Industrial Policy and Promotion (DIPP), according to media sources.

Under the plan, the company intends to invest around $40m in its business operations.

"We intend to bring in additional capital of $40m within the next few weeks to expand our business further and grow the market.”

Grofers founder Albinder Dhindsa said: “Going a step beyond our initial commitment to the government, we intend to bring in additional capital of $40m within the next few weeks to expand our business further and grow the market.”

He further noted that the approval will also improve quality and reduce prices.

The approval comes after the government recently accepted Amazon’s $500m FDI proposal in the food retail segment.

Last year, the government relaxed policy regulations to allow FDI in the food retail sector, which includes physical stores and online business, provided that goods sold through these channels are sourced from within the country.

Grofers delivers groceries, fruits and vegetables, cosmetics, electronics, bakery items, flowers and other items to online customers.

The company currently operates across 25 cities in India.