Grofers goes an extra mile to get Rs 2,500 Cr in revenue this fiscal
Delhi-based online grocery marketplace Grofers today announced its foray into the FMCG segment with the launch of seven new brands under two categories – Budget and Popular G-Brands. It has also launched the app and website in Hindi.
In an effort to bring 100 million new customers online and generating Rs 2500 crore in revenue this fiscal, they plan to roll out at least 250 SKUs. According to a press release, the Popular G-Brands category offers brands including ‘G Mother’s Choice’, ‘G Happy Day’ and ‘G Happy Home’. The economical ‘Budget category’ has ‘HaveMore’ and ‘SaveMore’ brands which claim to offer entry-level quality products.
According to a press release from the company, The G Happy Day and HaveMore brands include an array of food products like tea, fruit jam, muesli, tomato ketchup, corn flakes, rose shahi sharbat etc. whereas the G Happy Home and SaveMore brands address household needs with products in the categories of detergents, household care, oral care, tissues & disposables, kitchen tools & accessories, and furniture & storage.
“G Mother’s Choice is the flagship brand of the e-grocer that enlists a wide range of quality staples at the lowest price in the market. Grofers’ range of private label is priced approximately 5 percent to 50 percent lower than the market price for popular brands in these categories,” it adds.
Albinder Dhindsa, Co-Founder and CEO, Grofers, said in the press release that Grofers’ foray into the FMCG segment will drive their next phase of growth in India. “In the last five years, we have received an overwhelming response from our customers and experienced tremendous growth. Through many industry-first initiatives, we have been instrumental in bringing new customers to the ecommerce fold with 15 percent of this customer base being our monthly unique shoppers. Our focus is to service what we call the ‘Real Bharat’ - the two wheeler families of India who are yet to experience the world of e-commerce and our target is to bring the next 100 million new customers to e-commerce industry through our platform,” he has added.
Targeting mostly middle-class families, Grofers is taking a book out of US retail giant Walmart’s book – by offering ‘Every Day Low Prices’ (EDLP), which has maintained the 50-year-old company’s leadership in retail. Targeting a particular consumer segment means catering to particular demands too. Many people buy unbranded ghee as it is Rs 50 cheaper than the branded ones. Grofers was already selling Amul and Patanjali ghee; but now they sell unbranded ghee too with better price, quality, packaging, and value proposition.
Big year for Grofers
Earlier this year, Grofers raised Rs 400 crore (about $62 million) in a Series E round from its existing investors SoftBank and Tiger Global Management, making the total funding of the five-year-old company $226 million.
In January, Grofers’ membership/subscription-based service Smart Bachat Club crossed 50,000 subscribers in just two weeks. Members of the club would be able to shop for their daily groceries by paying as low as wholesale prices. Today, it claims to have over 200,000 customers.
As per Grofers’ statement, the brand has invested in building capabilities in product quality control, data sciences, inventory forecasting, consumer behaviour, manpower training and building supply-chain efficiencies. They are also building infrastructure to provide necessary support for inventory stock.
Grofers claims that it closed last fiscal with Rs 950 crore in sales and is targeting 50 percent contribution from its private brands this fiscal, from 35 percent in FY2018.