Grofers partnered with major brands and suppliers to stock up extra in order to resolve any availability concerns for the customers
Online food and grocery retailer Grofers claims it has tripled sales between February 2017 through November, 2017 and it is exiting this year at a revenue annual run rate of Rs.1000 crore.
Albinder Dhindsa, co-founder & CEO, Grofers said “At Grofers, sales tripled between February and November, 2017 and we are exiting this year at a revenue annual run rate of Rs.1000 crore. Our average daily order volumes are now at 25,000 - a near 200% jump from the start of the year. Our core category for the year remained staples. We successfully positioned ourselves as a monthly grocery stock-up destination with staples growing 5 times for us in 2017. Also, starting June this year, we maximized our investment in building the General Merchandise category, including a range of kitchen & bathroom utility essentials, plastic ware, cookware, apparels and more. We want to be a one-stop solution for everything our consumers need for their homes, from food FMCG, non-food FMCG to durables. Post GST, we grew our GMV by 60% over the previous quarter. Our new user acquisition rates also increased by near 50% in the month after GST implementation.
Also during the GST transition, Grofers partnered with major brands and suppliers to stock up extra in order to resolve any availability concerns for the customers. Further, during that period, a low supply in offline channels, proved to be a period of online grocery adoption, which in a way has helped the company to gain consumers.
Lately online food and grocery retail has been attracting a lot of interest from e-commerce giants including Amazon, who has received FDI approval to open its food only retail venture in India.
Dhindsa also said “The $500m online grocery industry (GMV) has been witnessing steady growth in 2017 and we have been the biggest driver of that growth. The Industry has since been growing at 30% q-o-q with Grofers projected to grow at 50% q-o-q, till the end of Q4 2017. We expect the market to grow to a consolidated GMV of $2 bn by 2019. We have grown 4x over the last year and continue to provide a unique value proposition that is built for Indian customers”.