Grofers India plans to double its sales to Rs 5,000 crore by FY’20.
Grofers targets Rs 5,000 crore sales in the current fiscal.
Company targets in next two years to expand the warehouse capacity from 26 million square feet to 40 million square feet to support the supply
Online supermarket giant Grofers India is focusing on profitability and is enhancing its business aggressively. The company is focusing on doubling its sales to Rs 5,000 crore by FY’20 and is also gearing up to hit the capital market with an initial public offer (IPO) within the next three years.
Albinder Dhindsa CEO and co-founder of Grofers said, “We have closed FY 2019 with Rs 2,500 crore sales. At present our monthly sales have touched Rs 225 crore, growing at 8.5 percent month on month. We expect around Rs 5,000 crore sales in the current fiscal.”
Last value of Grofers was $600 Million and it had moved out of hyper-local delivery model 3 years ago. This strategy not only assisted the company in surviving but also patronized it in the flourishing year after year and also helped it in coming closure to break even in major cities of eastern and northern parts of India.
Grofers recently raised $60 Million. It deployed the raised funds in consolidating its presence in 12 cities to gain more portability rather than expanding its presence in more cities of India.
Dhindsa said, “We are very close to breaking even in Delhi and we have managed to break even in Gurgaon and Noida regions. Kolkata numbers are also on the verge of turning positive.” He also added by end of the current financial year many more cities will turn profitable except for the ones in western and southern India, where Grofers is still in investment mode. At the company level, we will start making profits by 2020- 21.”
Co-founder of Grofers also added, “Our own brand sales such as Mother’s choice, Happy Day, Happy Homes and Gfresh, have reached 40% of sales and in the next two years it will expand to 60 percent.” He also added, in two years, we plan to expand the warehouse capacity from 26 million square feet to 40 million square feet to support the supply chain.
Recently Grofers operates only in Eastern Region out of Kolkata. By using existing warehouses in the NCR region, the company will spread its services to nearby cities such as Rohtak, Bhiwadi, and Meerut. Grofers works with 4,000-5,000 small merchants who assist the company in fulfilling its orders.
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