Softbank-backed Grofers has advanced its plan to launch an initial public offer by the end of next year after its profitability path zoomed during the lockdown period
Softbank-backed Grofers has advanced its plan to launch an initial public offer by the end of next year after its profitability path zoomed during the lockdown period, a top official of the company said.
"Our path to profitability has accelerated during the lockdown, and after achieving operational profitability in January, we are on track to become EBITDA and cash positive by the end of this year. We are observing market sentiments and aim to hit the capital market by the end of 2021," Dhindsa said.
Earlier the company had plans to go public in 2022. The company closed the financial year with a revenue of around ₹2,500 crore and the valuation of Grofers is estimated to be close to ₹6,000 crore.
"As an organisation, we have always channelled our efforts towards providing value to our customers. And, we will continue to do so by staying true to our brand promise of low prices through our focus on building an efficient supply chain and technology-driven innovations," Dhindsa said.
According to the data shared by the company, Grofers shipped 4.4 crore items last month, with 99.7% accuracy and since the lockdown began. It claims to have served 42 lakh households by the end of May.
"Our platform continues to witness high demand and we expect this to stabilize at 30% higher than pre-COVID levels. There has also been a 40% increase in basket size as compared to the pre-COVID era. We are seeing 64% first-time online grocery shoppers and 15% first time online shoppers," Dhindsa said.
During the lockdown, Grofers opened three new facilities and two more are in the pipeline at Bhiwadi and Lucknow. "We are looking to add 10-15 facilities before the end of this year. We are helping our manufacturing partners with logistics, working capital, and distribution so that we can maintain constant supplies of goods for our customers. We started reverse picks on our own trucks and procured goods from the warehouses of our FMCG partners," Dhindsa said.