Grofers revokes 60+ job offers

By: | Published: June 29, 2016 10:21 PM

Hyperlocal delivery platform Grofers (run by Locodel Solutions) has revoked about 60 plus job offers it made to students of National Institute of Technology-Surathkal, Birla Institute of Technology-Pilani, among others.

In January this year, Grofers had rolled back operations in nine cities. Backed by SoftBank and Tiger Global, the company had raised 0 million in November last. (Source: Website)In January this year, Grofers had rolled back operations in nine cities. Backed by SoftBank and Tiger Global, the company had raised 0 million in November last. (Source: Website)

Hyperlocal delivery platform Grofers (run by Locodel Solutions) has revoked about 60 plus job offers it made to students of National Institute of Technology-Surathkal, Birla Institute of Technology-Pilani, among others.

Apparently, Grofers has informed the students, who were to join the company later this week, through an email. This has angered the campus recruits.

This move comes barely a month after e-commerce major Flipkart had delayed the joining dates of its campus hires from IIM Ahmedabad and IITs, citing restructuring of its businesses. It had drawn lot of flak from the colleges as well as the industry.

Also Read: Grofers moving to inventory model with fruits & veggies under pvt label ‘Freshbury’

The founders of Grofers, Albinder Dhindsa and Saurabh Kumar have confirmed the development and posted an apology on the company’s blog post saying, “We had to take some difficult decisions over the past few days. We realize the impact this has on our campus hires and we do not view it lightly. But even before that, we want to apologise for the way we handled the situation.”

“In the past couple of months, we have been making some necessary strategic changes within the company. The changes we have made will, in our opinion, benefit our customers in the long term. However, these changes have made the new roles redundant and therefore, we are no longer able to continue with the offers we made a few months back,” they added.

In January this year, Grofers had rolled back operations in nine cities. Backed by SoftBank and Tiger Global, the company had raised $120 million in November last.

The company reported a net loss of Rs 3.9 crore in FY 15, its first full year of operations, according to a filing with the registrar of companies. During the period, the company’s total revenue stood at Rs 86 lakh.

After receiving a lot of traction in 2015, the grocery business seems to have hit a bump in the country. Several e-commerce and online tech firms have shut their grocery verticals and some have scaled down operations.

In April this year, Grofer competitor PepperTap had shut operations across the country citing continued losses and shortage of funds to run its business. Recently, Flipkart shut its grocery service Nearby, less than five months after the e-commerce company started it as an experiment in Bengaluru. Taxi-hailing firm Ola too has shut it grocery business early this year.

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