Grofers Becomes First Indian E-grocer Firm to cross Rs. 300 crore on monthly

Key Highlights

Grofers offers products covering different categories

Grofers had tightened its losses slightly to Rs 258 crore in FY18

Operative earnings swelled 58% up to Rs. 53 crore during the year to March 2018

Online grocer Grofers is an Indian company start-up that was founded in December 2013. The e-grocery based company was started by IIT graduates Albinder Dhindsa and Saurabh Kumar as an online grocery delivery service. At present, the firm is valued over $425 million after the fresh Series F funding round.

Grofers offers products covering different categories such as fruits, grocery, vegetables, beauty, medications, household care, baby care, bakery, pet care, etc. It operates in around 18 cities like Mumbai, Delhi, Gurugram, Kolkata, Ghaziabad, Kochi, Bhubaneshwar, Pune, Noida, Bengaluru, Ahmedabad, Jaipur, Chennai, Faridabad, Lucknow, Chennai, Kanpur, and Madurai.

Related : Online grocery platform Grofers eyes to convert 200 stores into its own branded outlets

Grofers had tightened its losses slightly to Rs 258 crore in FY18, help that twice the sales demonstrating the blooming proclivity for online grocery shopping in India. Last year, Grofers has made a net loss of rs. 268 crore. Operative earnings swelled 58% up to Rs. 53 crore during the year to March 2018, contrasted to Rs. 34 crore, data sourced from research dais Veratech displayed.

Other e-commerce firms that post income numbers on existent sales, Grofers’ numbers demonstrated income it earned through retail margin from brands and sellers. The Gurugram based company said it sold goods valued Rs. 1,000 crore during the last fiscal year.

The co-founder Saurabh Kumar said “At the working level, we presume to break even by June this year. Sales are twice over the past three years and we will end the current fiscal with sales of about Rs 2,500 crore,” Kumar added, “There were high fixed costs of footing and store housing originally but losses will prostrate down on the back of sales volume.”

Related : Online grocery retailer Grofers raises $200 Million in Series F funding round led by Softbank Vision Fund

According to the market research by Nielsen, E-commerce offers a total of 1.3% to Fast-moving Consumer Goods (FMCG) sales and is believed to touch 11% by 2030. FMCG firms have also been extensively introducing products exclusively for online daises.

In February, Grofers said it became the first Indian e-grocer firm to cross Rs. 300 crore on monthly based sales to become the largest online grocery company. Grofers’ competitor, BigBasket widen its sales by 35% to Rs 1,606 crore during the fiscal year 2018 at the same time losses declined by 53% up to Rs. 310 crore. The e-grocer sectors are almost quadruple over the next three years to reach 10,000 crores in terms of income. It is forecasted that the Indian online grocery market I ready to touch 270 the crores by the fiscal year 2019, growing at a compound annual growth of 62% from 2016 to 2022, according to Goldman Sachs report.

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