Gone are the days when we used to visit different grocery supermarkets, and daily need shops to buy grocery items. Now, you can do all those activities from your mobile phone. Mobile phone? Yes, just download an app or visit the website of an online grocery business and you can order whatever you want.
There are plenty of companies like Big Basket, Jio Mart, etc who are providing these services online. Grofers is also one such startup that has established itself as one of the trusted online grocery firms among the business giants including Jio Mart, and Big Basket.
Let’s dive in to know more about Grofers, the emerging online grocery startup.
About Grofers
In 2013, Grofers was founded in Gurugram India. The e-commerce firm not only provides grocery items, but is also famous to deliver bakery products, baby care, and other daily use items.
Albinder Dhindsa and Saurabh Kumar co-founded Grofers. Both observed that there is a big possibility of online delivery of items due to technological advancement. They also found that transaction infrastructure is quite good to start such a business.
Currently, Grofers is providing its home delivery services in 28 major cities of India. You can visit the Grofers app or website to order items. Customers can choose a delivery time at their convenience. The startup delivers items from morning 6 AM to 10 PM every day. Grofers have fixed a certain amount of shopping to get free delivery. Currently, it is Rs 800. That means if you purchase grocery items more than or equal to Rs 800, there are no delivery charges. Otherwise, you have to pay Rs 40 as delivery charges.
The startup provides different features in shopping to attract more customers. For example, if you are a club member or a premium customer who has bought the monthly/six months/12 months membership, you will get grocery items at a cheap price compared to the normal customer. As a club member, you will also get priority in delivery slots.
The startup offers different discounts on special occasions like Holi, Diwali, Eid, or Independence Day. Grofers also attracts customers by the House Full sale offered at the beginning of every month.
The company also offers a discount on different credit/debit cards, internet banking, or wallet payments online. The discount varies based on your cart value.
How Grofers Provides Cost-Effective Products?
Grofers not only provides these items easily but the startup also guarantees the least price in the industry. Grofers claim that if you find a grocery item cheaper than its platform, it will return the money.
So, how Grofers provide cost-effective products for its customers? Are the products genuine? Or they have fewer shelve lives? Well, no need to worry about these things. The products are genuine and latest.
It connects directly with the product manufacturing companies to avoid middlemen. And it helps customers, merchants, and Grofers as well. After providing less-priced products, it also earns commissions ranging from 8% to 15% based on the merchant product.
Up to now, Grofers have raised approximately $607 million in different funding rounds. Recently, Zomato also showed interest to invest in Grofers.
Grofers plans to expand its business to tier II and tier III cities and provide the best experience to its customers. Currently, it is in the second position in India on being the best brands of the online grocery store after Bigbasket but aims to secure the first position and retain the trust of people in India.
Grofers clocked a total revenue of Rs 176.79 crore in FY20. Grofers losses also grew by 42% to Rs 637.49 crore. Big Basket, the main competitor of Grofers, recorded a revenue of Rs 3818 crore in FY20. It indicates a big gap between Grofers and Big Basket. Recently, Tata acquired majority stakes in Big Basket firm.
