IBEF: September 30, 2019
Grofers, which is backed by Softbank, aiming to reach US$ 1 billion revenue mark by end of the current year. This comes as the support of both online and offline businesses. The company started its business as an online grocery platform. Earlier this year, it is announced that its working with brick-and-mortar stores in Delhi-NCR to convert them into its own branded outlets.
"In the first phase, we associated with 100 stores and currently we have 300 stores under the program, and this will be scaled to 1,000 by year-end, all in Delhi NCR region," Grofers founder Mr. Saurabh Kumar told.
The further plan is to expand this programme to cities like Mumbai and Bengaluru by the end of the year, Kumar added.
Kumar further added "We are aggressively growing our business and aiming to clock USD 1 billion in revenue by end of 2019 with a significant focus on our in-house brands in 2019. Our G-brands contribute 40 per cent to our current revenue, and we plan to increase it to 60 per cent in the coming years."
According to Kumar, the distribution expansion to offline Kirana stores have helped the company to increase its penetration in the market with G-brands.
The offline model has helped the business. He added "We help partner stores optimise their operations and improve their profitability by accessing our supply chain and technology."
This has also pushed the private label products of the company in market as well and thus, the company plans to expand into new markets and are aiming to partner with 50,000 offline stores in next 30-36 months.
The stores that are converted into Grofers branded stores and they sell Grofers' private label products that are usually priced 30-40 per cent less.
The product range of Grofers include categories like kitchen staples, FMCG products, personal hygiene products and household needs.
The company also aims to increase its range to 1,500 products by the end of 2020, Kumar said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.