Grofers’ FY18 loss narrows to Rs 258 crore

Published: February 23, 2019 2:02:00 AM

Online supermarket Grofers narrowed its losses for the year to March 2018 to Rs 258.30 crore from losses of Rs 268.32 crore posted in FY17, data sourced from business intelligence platform Tofler showed.

Grofers' FY18 loss narrows to Rs 258 croreGrofers’ FY18 loss narrows to Rs 258 crore

By Asmita Dey

Online supermarket Grofers narrowed its losses for the year to March 2018 to Rs 258.30 crore from losses of Rs 268.32 crore posted in FY17, data sourced from business intelligence platform Tofler showed.

Revenue from operations jumped 125% to `29.83 crore in FY18 from `13.23 crore reported in the previous year, the data showed. Operating losses fell to `88 crore from Rs 129 crore.

Saurabh Kumar, founder, Grofers, said in a statement that the gross merchandise value increased by 150% from FY17 to FY18. “With these economies of scale combined with robust growth prospects of the business, we are confident about strengthening this momentum,” Kumar said

The Gurgaon-based company, which was earlier a pure hyperlocal and shifted to becoming an online grocer with an inventory-led model, is banking on private labels in the fast moving consumer goods (FMCG) segment to drive its second phase of growth.

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The retailer offers both premium and entry level products across segments like food and beverages, personal care, household care, oral care, furniture and kitchen tools.

Saurabh Kumar had told FE in an earlier interview that the company’s strategy was to make cheaper consumer goods available to the masses. “There are logistics and storage costs involved in transporting goods from the manufacturers to the wholesaler and then to the retailer. All of that goes away in our case,” Kumar had said.

Analysts say the online FMCG segment has the potential to grow given its low penetration at present. According to a recent Care Ratings report, food and grocery commands a mere 2%-3% share of the e-commerce sector.

Rival BigBasket’s revenue from operations stood at `1,583.15 crore in FY18 against a revenue of `1,176.66 crore recorded in FY17.

Recently, online food delivery platform Swiggy had announced that it was going hyperlocal in the grocery segment with the launch of Swiggy Stores. Swiggy will cater to consumer’s daily needs by partnering with offline stores. To begin with, the Bengaluru-based firm will deliver from stores in categories such as fruits and vegetables, kiranas and supermarkets, florists, baby care, health and supplements.

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