Grofers records multi-fold rise in revenues to INR768 crore

Grofers, the hyperlocal ecommerce startup, has seen multi-fold rise in sales during the last 6 months with the current number standing at INR768 crore. It recorded high growth rate in sales due to its high-profile marketing campaign at the start of the year. Albinder Dhindsa, founder of Grofers, commented that “We have refined our strategy as we are focusing on limited number of SKUs (stock keeping units), which allows us to play on pricing much better. The only way to drive consistent growth is through pricing”.

The company has changed its strategy from being a “find all” place to limited stock. It has brought the number of SKUs from 12,000 at peak to 6,000 now, with a focus on the most popular products. This has also allowed it to negotiate better margins as it can buy larger volumes and offer better prices to customers. Recently, Grofers also got the government approval for retailing food products in India and will invest $40 million to expand operations in the country. Going forward, the company also plans to launch private labels in the space. The startup was also in talks with BigBasket for merger earlier this year, however, those talks didn’t materialize.