Grofers aims $1 billion in revenue by year-end, to add 700 kirana stores

Gurugram-based online grocery platform Grofers is planning to earn USD 1 billion in revenue by the end of the year 2019, backed by very strong growth in both its online and offline businesses. The Softbank-backed online grocery company aims to add around 700 Kirana stores to the entire network.

Mr. Saurabh Kumar, the founder of Grofers, said in a statement: “We are aggressively growing our business and aiming to clock USD 1 billion in revenue by the end of 2019 with a significant focus on our in-house brands in 2019. Our G-brands contribute 40 percent to our current revenue, and we plan to increase it to 60 percent in the coming years.”

He further added that the distribution expansion to the offline Kirana stores earlier this year has helped a lot in increasing penetration of the G-brands, adding that the offline model has helped bolster the company's business. "We help partner stores optimize their operations and improve their profitability by accessing our supply chain and technology," he said.

Kumar said that partnering with various offline stores has helped Grofers brand push its home-grown brands (private label products) in the main market as well. "We are now expanding into new markets and are also aiming to partner with around 50,000 retail stores in the next coming 30-36 months," he added.

The Kirana stores are being converted into Grofers-branded stores recently and they sell Grofers' private label products that are priced 30-40 percent less than other brands. Currently, Grofers has more than 1,200 products spread across various categories such as kitchen staples, FMCG products, personal hygiene products, and household needs.