Grofers, on track to surpass FY20 sales target of Rs 5,000cr, lauds budget measures

Fueled by its sales drive, online supermarket Grofers is well on track to surpass its FY 2019-20 revenue target of Rs 5,000 crore, according to Albinder Dhindsa, Co-Founder and Chief Executive Officer - Grofers.

The company is optimistic about achieving the target after it clocked a revenue of Rs 515 crore in Jan 2020 during its (GOBD)-3 from Jan 18-26, driven by its grocery sales week in the month.

In comparison, during January 2019, the company garnered sales revenue of Rs 310 crore in the offer period.

Grofers is a low-price online grocer that allows consumers to order products across categories like grocery, staples, beverages, personal care, home and kitchen, and meats and seafood, and it delivers these products to their doorsteps.

Grofers recently concluded it GOBD-3 when it brought 10 lakh new customers to its platform. “During GOBD-1, we sold 1.81 crore items worth Rs 207.5 crores and had brought 2.5 lakh, new customers. Subsequently, during GOBD-3 we sold 4.8 crore items worth Rs 403 crores and brought 10 lakhs, new customers,” Dhindsa said.

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Of the total online users on Grofers platforms, 25 percent new users were acquired from non-metro cities every month in 2019 and during the GOBD a similar trend was noticed, Dhindsa said.

In all 27 lakh, customers shopped during GOBD, of which 10 lakh were new users. During the sale, more than 32 lakh orders were placed on the platform, according to Dhindsa.

Speaking on the Union Budget 2020, Dhindsa said, "Support to the farming community for improved income and a dual option for computing personal income tax will leave consumers with more disposable income in their hands. This is a pro-middle class move to lift consumer confidence and we expect this to be beneficial for many sectors including FMCG, consumer durables among others which were facing growth challenges last year.”

Moreover, he said, skilling, significant investments in infrastructure and an overall boost to the start-up ecosystem will generate employment opportunities.

He further opined that the investment in improving infrastructure and better connectivity is likely to help the movement of goods across India and may benefit small manufacturing businesses operating from distant locations.