What does "groovy" mean in this context?
I text, "Let us meet in the afternoon. Say 4pm."
Native English speaker replied, "Groovy."

I think he meant "okay" or perhaps "perfect", but I am still not sure. I googled it at that time, but most websites didn't give me enough on this. It felt like a positive response, so I just went with my instinct. I did see him at 4pm, though.

Question

What does "groovy" mean in this context?
I text, "Let us meet in the afternoon. Say 4pm."
Native English speaker replied, "Groovy."

I think he meant "okay" or perhaps "perfect", but I am still not sure. I googled it at that time, but most websites didn't give me enough on this. It felt like a positive response, so I just went with my instinct. I did see him at 4pm, though.

Answer

You are correct. It is an afirmative, positive answer.
It is very old English, as in previous century by several decades. :)
.
My guess is that this expression is now only used for that retro effect.