Online grocery retailer Grofers on Tuesday said it has expanded its services to 27 cities from 14, including concentric circles such as Vadodara, Meerut, Rohtak, Panipat, Agra, and Durgapur.
Launched in 2014 by Albinder Dhindsa and Saurabh Kumar, Grofers’s online grocery platform has enabled it to tap into the fast growing middle income communities in urban India. The company claims to be a market leader in India and with this expansion, Grofers aims to give millions more people access to affordable groceries.
Commenting on the expansion, Dhindsa, co-founder and CEO, Grofers said, “At Grofers, our aim has always been to build an infrastructure that enables us to provide best quality products to consumers at affordable price points. With this expansion, we plan to reach out to consumers in non-metro cities and introduce them to the world of value-for-money groceries. Increased smartphone penetration has already set the path for digital adoption and we are hopeful that we would be able to dominate this space, just like we have done in our existing markets."
Over the last two years, Grofers’ technology platform and focus on core markets has helped it grow a staggering 800% to achieve an annualised gross merchandise value of $700 million.
With the lowest cost of delivery in the online space, the company offers a complete range of quality products, strategically priced 30-40% less than national brands, across various categories such as staples and kitchen ingredients, FMCG and personal hygiene items.
Focussed on the price sensitive Indian consumers who are primarily driven by savings, the company believes this expansion will help Grofers to deepen the penetration of its wide portfolio of Own Brands.
Close to 90% of Grofers’ users use the company’s private label brands (G-brands).
Grofers, which competes with the likes of BigBasket as well as grocery verticals of e-commerce majors such as Flipkart and Amazon, saw its total income grow over 56% to ₹83.62 crore in 2018-19 from ₹53.47 crore in the previous financial year.