And, Grofers is back
Will it survive?
Will it survive?
Grofers raised INR 400Cr from Softbank yesterday. However, it’s still bleeding. Grocery business is a long race, and they lack financial backing.
Why is it difficult?
Amazon Now aims to capture grocery delivery market. It is setting up 15 centres to fulfill demand for Amazon Now. It’s up and above 56 centers it already runs. It also has a war chest of billions of dollars.
Bigbasket recently raised INR 2000Cr. It’s present in 26 cities.
Flipkart is also entering the gocery delivery market, with Walmart’s backing.
How has been the journey so far?
2015–2016: Bad days
Halted deliveries in Noida & Delhi to sort out issues.
Starts delivery with Ola. Shuts down next year.
It was losing INR 24 lakhs per day.
Shut down operations in 9 cities.
Laid of 200 employees and withdrew 67 job offers.
2017–2017: Turnaround
From 60k orders to 30k orders per day, but bigger.
Profitable market place.
Improved supply chain.
Building own warehouses like Bigbasket.
INR 270 crores in Bank
What’t the way forward?
With the big players in game, Grofers may aim to merge with Bigbasket or Flipkart. Or else they may have to grow their scale. At current pace other players will beat it.