Grofers have turned successful in Delhi NCR and touched break-even in Kolkata, its top executive said, is a sign that the grocery retailer was not wasting money in these businesses. AlbinderDhindsa, co-founder and CEO of Grofers says that the profit came in as a result of reducing last-mile costs and the massive jump in revenue. Gurugram-based grocery delivery startup Grofers is also reached break-even in Kolkata and Mumbai.
“By increasing our store network and density of orders in Delhi and Kolkata, we were able to reduce costs,” he said, adding that it did not, however, include marketing or technology spends. The company is working on attaining profitability in other cities, where Lucknow is on the verge of the break-even point.
After this, Grofers has also decided to expand 27 cities from 14, including areas such as Vadodara, Meerut, Rohtak, Panipat, Agra, and Durgapur by joining over 100 Mn customers from these areas. Currently, The Company works with over 6,000 local store partners and average order around 45k in both Delhi and Kolkata. Additionally, Grofers also spend on TV Ads to reach our target audiences
Grofers, backed by Japan’s SoftBank and the New York-based venture capital firm Tiger Global clocked revenue of Rs 84 crore from this combined two cities on FY2018-19. Grofers, which competes with the equivalents to BigBasket as well as grocery verticals of e-commerce giants such as Walmart Owned Flipkart and Amazon. Launched in 2014 by IITians Albinder Dhindsa and Saurabh Kumar has raised about $535million from investors including SoftBank, Tiger Global and Sequoia Capital.