Saurabh Kumar, the co-founder of the online grocery firm Grofers, has parted ways with Grofers after 8 years of successful journey. He left the startup at a time when the discussion with Zomato was on for new funding round.
Saurabh Exits Grofers
Saurabh Kumar and Albinder Dhindsa, co-founders of Grofers, started their entrepreneurship journey through an online grocery firm in 2013. In a recent development, Saurabh has left the firm and will continue as a board member.
It is an emotional movement for both Saurabh and Albinder who were together in a roller coaster ride of Grofers.
Talking about Saurabh and his journey with Grofers, Albinder said:
“So, while SK (Saurabh Kumar) will no longer be involved in day-to-day responsibilities at Grofers, he will continue to be a board member and a shareholder at the company.”
He further added:
“This is the end of an era for Grofers, and I know all of us will miss having him around every day. I wish him the absolute best with his new mission and will be cheering for him with love and pride.”
Saurabh and Albinder both are IIT alumni. They came up with the idea of online grocery delivery to make life easy for big cities’ residents. The startup operated mostly under a marketplace model in its early years.
After 2017, Grofers brought big changes in terms of expansion and adding more categories to serve the customers a wide range of products. Currently, it operates in over 27 cities and offers online delivery for products across categories such as fruits, grocery, vegetables, etc.
Financial Growth of Grofers
Saurabh Kumar, the co-founder of Grofers, helped the startup in exponential growth. He had strong connections with investors to raise funds for the online grocery firm. Due to his efforts, the startup has raised over $660 million in different rounds from investors including Softbank, Tiger Global, Sequoia, Trifecta Capital, Bennett Coleman and Co, and others.
As per Grofers internal report, Grofers recorded total revenue of Rs 176.79 crore in FY20. Out of that revenue, operational revenue stands strong with Rs 164.26 crore, whereas the startup earned Rs 11 crore revenue from other sources like investment and fixed deposits. In the same financial year, the company also recorded a 42% increment in its losses to Rs 637.49 crore.
The startup saw a surge in its operations during covid years. As per the startup’s claim, it saw a 60% surge in its GMV during 2021. The online grocery firm has also added over 5000 local stores as the new suppliers. The company opened its operations in 23 new locations in 2020.
Grofers has plans to go public by 2021. Bigbasket and Reliance JioMart are the major competitors of the startup. Recently, Bigbasket has been acquired by Tata Sons’ digital subsidiary Tata Digital. Grofers is in talks with Zomato to raise $300 million.
As per business experts’ opinion, Saurabh’s exit during an advanced investment talk with Zomato raises eyebrows. But, both the co-founders rejected such theories. As per their claims, it was a smooth exit and both co-founders will continue seeing each other.