Grofers, backed by Softbank, has expedited its plans to launch an initial public offering (IPO) by the end of next year following a significant acceleration in its path to profitability during the lockdown period, revealed a top official of the company.
Path to Profitability Acceleration
Albinder Dhindsa, co-founder and CEO of Grofers, disclosed that the company began generating operational profit in January and anticipates achieving cash positivity by the year’s end. He emphasized that the lockdown period has catalyzed their journey to profitability, and after attaining operational profitability earlier this year, they are on track to achieve EBITDA and cash positivity by the end of 2021.
IPO Plans Advancement
Initially slated for 2022, Grofers has rescheduled its IPO plans to expedite its market debut, aiming to capitalize on its enhanced financial performance and market sentiment.
Financial Performance
Closing the financial year with a revenue of approximately Rs 2,500 crore, Grofers is currently valued at close to Rs 6,000 crore. Dhindsa reiterated the company’s commitment to delivering value to customers through its emphasis on low prices, efficient supply chain management, and technology-driven innovations.
Operational Efficiency and Growth
Despite challenges posed by the pandemic, Grofers has demonstrated operational resilience, shipping 4.4 crore items with 99.7% accuracy last month. Serving 42 lakh households by the end of May, the platform has witnessed sustained demand, with a 30% surge expected to stabilize above pre-COVID levels. Moreover, there has been a 40% increase in basket size and significant traction among first-time online grocery shoppers.
Expansion Efforts
During the lockdown, Grofers expanded its operational footprint by opening three new facilities, with two more underway. Plans are underway to establish 10-15 additional facilities before year-end, bolstering logistics capabilities and ensuring a seamless supply chain. The company has also onboarded over 3,000 new hires for supply chain operations, with further recruitment initiatives in progress, particularly targeting individuals affected by the crisis in industries such as textiles and car rentals.
Future Outlook
With 10,000 partner stores and a robust supply chain infrastructure, Grofers remains steadfast in its commitment to meeting evolving consumer demands while driving operational excellence. As it gears up for its IPO, Grofers aims to leverage its market position, operational efficiency, and customer-centric approach to unlock new growth opportunities in India’s burgeoning e-commerce landscape.
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