Gurugram-based online grocery platform Grofers plans to clock USD 1 billion in revenue by the end of the year, on the back of strong growth in both its online and offline businesses. Softbank-backed online grocery firm also aims to add 700 kirana stores to the network.
"We are aggressively growing our business and aiming to clock USD 1 billion in revenue by end of 2019 with a significant focus on our in-house brands in 2019. Our G-brands contribute 40 per cent to our current revenue, and we plan to increase it to 60 per cent in the coming years," Grofers founder Saurabh Kumar told news agency PTI.
Kumar said that the distribution expansion to offline kirana stores earlier this year has helped in increasing penetration of the G-brands, adding that the offline model has bolstered the company's business. "We help partner stores optimise their operations and improve their profitability by accessing our supply chain and technology," he said.
He added that partnering with offline stores has helped Grofers push its home-grown brands (private label products) in the market as well. "We are now expanding into new markets and are aiming to partner with 50,000 offline stores in the next 30-36 months," he said.
The Kirana stores are converted into Grofers-branded stores and they sell Grofers' private label products that are usually priced 30-40 per cent less. As of now, Grofers has over 1,200 products spread across categories like kitchen staples, FMCG products, personal hygiene products and household needs.
The company also plans to increase its range to 1,500 products by the end of 2020, Kumar said.
Earlier this year, the company had said it is working with brick-and-mortar stores in Delhi-NCR to convert them into its own branded outlets.
"In the first phase, we associated with 100 stores and currently we have 300 stores under the program and this will be scaled to 1,000 by year-end, all in Delhi NCR region," Kumar said.
He said that the plan is also to expand this programme to Mumbai and Bengaluru by the end of the year.
In May this year, Grofers raised over $200 million (over Rs 1,400 crore) in funding, led by SoftBank Vision Fund.
Grofers is pursuing profitability by consolidating its presence in the cities of operations and is focusing on doubling its sales to Rs 5,000 crore by FY20. The company said it is also gearing up to hit the capital market with an initial public offer (IPO) within the next three years.
Edited by Chitranjan Kumar with PTI inputs