Grofers on Monday said it will offer a 33 percent salary hike to its tech team effective July, along with a " hefty ESOP allocation" as the online grocery delivery platform looks to retain staff woo more tech talent.
The SoftBank-backed company, which plans to launch an initial public offering (IPO), has also hinted that it has secured a new funding round.
“After coming out of the second wave, and by the time the next funding round is secure, I think it is time to kickstart a lot of initiatives that I have been waiting for at the right time to begin.
"We have done well so far, but we have to do better. And in hindsight, one of the most important things we could have done in the past to do better is to focus and invest in technology more than we have done so far." Grofers CEO Albinder Dhindsa said in a blogpost.
He added that technology will always be the " number one priority going forward."
As per reports, Grofers is in talks for a USD 100-120 million fundraise.
Dhindsa admitted that Grofers has been below average in terms of compensation to its technology team, and said this has resulted in the company's inability to attract top talent.
"I also realize that we are sub-par in terms of compensation to our technology team compared to other technology companies in the country. And that has two ramifications: We cannot attract the best talent and we cannot motivate the best talent. tech team ... all tech team gets 33 percent increase in salary as of July.
He added that depending on the impact the employee has had over the past year, "there will also be a significant allocation of employee stock ownership" ESOP that will be communicated to them in the coming weeks.
"We will only be successful as an organization if we invest heavily in technology. Our DNA must evolve into a technology company, not an e-commerce company that uses technology ... Let's start thinking about our team in two parts: 'technology and operations' ", not 'business and technology".
Interestingly, Grofers co-founder Saurabh Kumar had last week that he had decided to leave the company. Kumar will continue to be a board member and shareholder in the company.
Grofers has seen strong business growth amid the pandemic as containment measures invested millions in online purchases and led savvy online shoppers to buy more, including everyday food.
Social distancing compulsions, massive smartphone base, and reliable broadband have led e-commerce to market outside of metropolitan areas, into smaller cities and towns.
The Grofers compete against players like Amazon, Flipkart, BigBasket, and JioMart billionaire Mukesh Ambani in this space.
India's USD 950 billion retail market is expected to grow to the US $ 1.3 trillion in 2025-26. Of this, the e-commerce business is estimated to be around $ 78 billion and is expected to surpass USD 100 billion by 2025. Groceries are the last category that e-commerce companies are phasing out.
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