Online grocery delivery firm Grofers, after having raised $120 million from public-listed firm Zomato, has forayed into instant deliveries and delivered to over 7,000 households in 15 minutes on July 26, said co-founder and chief executive Albinder Dhindsa."When the first wave of the current pandemic hit, we realised two things.
First, we needed to do more to support the ecosystem of local partners and delivery agents who made sure essential commodities reached our users. Second, we recognised that our users' needs were distributed throughout the month when they needed to access grocery services for many use cases," Dhindsa said in a Tweet on July 27, announcing the foray.In 2020, Grofers transformed its network of partners in Gurgaon to start sourcing directly from brands and also set up infrastructure that would enable them to serve end customers faster and with fewer touch points.
"Our work over the last 5 years allowed us the tools and the privilege of enabling an ecosystem that could promise to deliver groceries to every household in Gurgaon within 15 mins. Yesterday, over 7000 households experienced delivery within 15 mins," he added.
This is not Grofers first attempt at instant deliveries. The company had started it in the early years of its existence, but it was shut down owing to high burn and low ticket sizes.
In June, Grofers earlier raised $120 million from Zomato. Existing investor Tiger Global also participated in this round. Moneycontrol was the first to report this development on June 29.
Zomato has sought approval of the Competition Commission of India (CCI) to acquire a 9.3 percent stake in the firm.With this investment, Grofers will turn into a unicorn, a term used to describe privately funded technology startups that have a valuation of a billion dollars or more.
In a recent interaction with Moneycontrol, Zomato's rival Swiggy too spoke about the importance of non-food delivery segments and its plans to double down on grocery and meat delivery verticals.In a rare interaction, soon after raising $1.25 billion from Softbank and Prosus, Swiggy's founder and CEO Sriharsha Majety told Moneycontrol that grocery was a big thing and in the next five-10 years and that the company was making big progress in food and convenience grocery segment.