Online grocery firm Grofers India posted a near three-fold increase in its revenue to Rs 100 crore in FY18, from Rs 33.9 crore in FY17, Albinder Singh Dhindsa, co-founder and CEO, told FE.
Online grocery firm Grofers India posted a near three-fold increase in its revenue to Rs 100 crore in FY18, from Rs 33.9 crore in FY17, Albinder Singh Dhindsa, co-founder and CEO, told FE. “Losses reduced by about 24% to Rs 205 crore in FY18 from Rs 268 crore in FY17,” he said.
Giving reasons behind the reduction in losses, Dhindsa said, “Currently, we generate about 40% of our revenue from the sale of private label products. This allows us to earn higher margins. Also, with the number of orders increasing month-on-month, the cost of delivery of per order has reduced to Rs 90 now. This too has helped in reduction of losses.”
Grofers currently sells 600 products under its private label brand, Best Value. Moreover, in an effort to manage the rise in the number of orders, the company claims to be adding new warehouses of 1 lakh sq ft in size every week.
Currently, the online grocery firm claims to be clocking approximately 11 lakh orders a month, with the average order value being in the range of Rs 1,300 to Rs 1,400. With about 84% of its orders being repeat purchases, the company’s cost of customer acquisition is in the range of Rs 350–Rs 400 per new consumer every month.
According to Dhindsa, on a group level, which also includes earnings from subsidiaries, Grofers exited FY18 on the back of revenue Rs 800 crore. “We have been adding 1.5 lakh new customers every month. Number of orders too has been growing at a rate of about 15%-20% month-on-month,” Dhindsa added. Grofers International Pte is headquartered in Singapore with the company running four to five subsidiaries in India.
Grofers is currently valued at $300 million by its investors including Japan’s SoftBank Group and Tiger Global. It competes against BigBasket besides Amazon India’s online grocery businesses, Amazon Now and Amazon Pantry.