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