IPO-bound Indian online grocer Grofers net loss widens in FY20

Grofers. Photo: Ramesh Pathania/Mint

Online grocer Grofers’ net loss swelled 42% to 637.4 crore in 2019-20 from 448 crore the previous year, even as its revenue more than doubled to 176.7 crore. In 2018-19, Grofers had reported revenue of 83.6 crore.

The company’s expenses also rose by 53% to 814.2 crore from 531.6 crore in the preceding year, documents sourced from business information platform Tofler showed.

Grofers, which was earlier looking at overall profitability by 2020, now plans to achieve the target in 2021. However, it is pushing ahead with its plan to launch an initial public offering (IPO) by this year-end.

Grofers’ larger rival BigBasket saw its revenue grow to 3,818 crore in FY20 from 2,802 crore in FY19. The company’s losses also jumped to 709 crore from 562 crore during the same period.

Grofers co-founder and chief executive Albinder Dhindsa in a recent interview said that the company is looking to make acquisitions in the technology products space and is evaluating e-commerce-specific technology products as it builds more efficient supply chains.

“We are evaluating businesses we could acquire that help enhance the intangible benefits customers are looking for, that is relevant product offerings, convenience and, of course, peace of mind,” Dhindsa said in an interview in January. At present, private labels currently form almost 42% of its revenue, and it plans to invest $15 million in this category. Grofers expects private labels to fetch almost 60% of revenues by FY23.

With the ongoing pandemic, Grofers ended 2020, with close to 12,000 store partners as compared to 7,000 partners pre-covid.

The company also added close to 10,000 sq. ft of warehousing space during the year. The ramp-up in warehousing has helped Grofers make express deliveries in two hours, Dhindsa said.

Its sales volume grew 80% in 2020, and it is now present in 38 cities, the company said.

The article was first published on livemint.com 

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.