Grofers gets DIPP approval for online trading of food products
Grofers founder Albinder Dhindsa says the online grocery firm intends to bring in an additional capital of $40 million within the next few weeks to expand its business
New Delhi: Online grocery marketplace Grofers on Wednesday said it has received the final government approval to sell food products both online and through physical stores. The approval was accorded by the Department of Industrial Policy and Promotion under new norms and follows a similar go-ahead given to Amazon Inc. earlier this month. What it means is that both Amazon and Grofers can now own inventories of foods and food products, which was not allowed earlier.
“This will go a long way in promoting the grocery retail business in India and for Grofers to provide the best retail experience to its customers across online and offline channels,” Albinder Dhindsa, founder of Grofers, said in a statement.
This will allow the online supermarket to create a direct line with farmers in the food supply chain, reduce wastage and offer lower prices to consumers, the company said. Foods and food products account for 70% of sales at Grofers. “Going a step beyond our initial commitment to the government, we intend to bring in an additional capital of $ 40 million within the next few weeks to expand our business further and grow the market,” Dhindsa said.
With the implementation of Goods and Services Tax, coupled with the latest approval, Grofers said it expects supply and compliance costs to “rationalise significantly.”
- BoM chief’s arrest unwarranted, allegations inaccurate: bankers’ body
- Skoda’s India comeback project receives Volkswagen approval
- Opec moves towards raising oil supply as Iran softens stance
- Mongolia launches construction of first oil refinery with India aid
- India hopes to open Iran’s Chabahar port by 2019
Editor's Picks »
- NCLT allows extension of the deadline to evaluate bidders of Mandhana Industries
- Smart Cities Mission is too project-based and lacks integrated vision: Report
- West Bengal chief minister Mamata Banerjee cancels China visit
- Chai Point expects aggressive growth in its vending machines business
- Symphony to buy out Climate Technologies