Grofers - Bringing Grocery at Your Home in a few Clicks

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As we move forward in the world of modernization, we tend to scroll the screens of our mobile phones too often, to shop, to learn, to relax and to the endless list of things that we use them for. These things have made our life simple enough to fulfill our daily needs. Today we do not need to go out and purchase our daily goods, grains, and veggies from the market, all we need is our mobile phone with an internet connection.

While we talk about ordering the daily goods and groceries what comes up in your mind? Well, there are many such applications, websites and companies and one of the most famous ones is Grofers. This e-commerce company has offered us with variety of daily goods that made our lives easy. Check this article to know more details about Grofers.

Grofers - Company Highlights

Startup Name Grofers
Headquarter Gurugram, India
Sector Online Shopping
Founders Saurabh Kumar, Albinder Dhindsa
Founded December 2013
Area Served India
Parent Organization Grofers India Private Limited

About Grofers
Founders of Grofers and How it Started?
Grofers - Name, Tagline, and Logo
Grofers - Business Model and How it Works?
Grofers - Revenue Model
Grofers - Funding and Investors
Grofers - Startup Challenges
Grofers - Competitors
Grofers - Future Plans

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About Grofers

The Gurugram based Indian on-demand online grocery delivery service Grofers was founded in the year 2013. This e-commerce startup platform provides a variety of daily needs products ranging from groceries, bakery items, baby care items and many more to its customers. From the mobile application of Grofers, the customers can buy and order their products at a scheduled time and the Grofers employees deliver these items to the customers. Currently, the company operates in 28 cities in India.

Founders of Grofers and How it Started?

Grofers was found by two IIT Graduates Albinder Dhindsa and Saurabh Kumar.

Albinder after his graduation worked as a transportation analyst at URS Company in the USA. While working he met Saurabh Kumar and kept in touch with him with absolutely no intentions of any entrepreneurial motives.

Both Albinder and Saurabh found that there was a huge gap in the delivery industry. They both thought to tap the opportunity as it was the time when many startups were emerging. They felt the need to sort the unorganized hyperlocal space in the transaction made between merchants and consumers.

Albinder Dhindsa and Saurabh Kumar are Founders of Grofers
Co-Founders of Grofers

That is when they started to build a base for their startup. Their idea was to provide a one-stop solution for the customers' local delivery needs by having an on-demand pickup and drop services. This was to facilitate the logistics from the shops around their locality like grocery stores, medical stores, and restaurants for the consumers. Initially, both of them also facilitated the delivery of groceries for customers from the neighborhood stores and supermarkets.

Also read: Abhinay Choudhary: Simplified Grocery Shopping Through BigBasket

The name Grofers is a combination of two words – Grocery and Gophers which particularly means a person who runs errands.

The tagline of Grofers is β€˜We get it’ which was initiated with an online advertisement campaign.

Grofers - Business Model and How it Works?

Grofers work on a marketplace business model and might also be referred to as the Hyper-Local on-demand logistics system. It aims to replace the need of consumers traveling to the local shops to buy consumer goods rather than want them to order online. This startup does not own any grocery stores or warehouses.

It just partners with the local grocery shops in the city and then sends their delivery boys to pick the items ordered by the consumers from these stores. They accept orders from their mobile application or the website. This Tie-up system helps the local grocery shop owners get more orders and also Grofers make a profit from these orders as the company charges some commission.

Grofers - Revenue Model

Grofers has tied up with the local shop owners and merchants for grocery and daily needs goods in the local areas. Grofers charges these merchants some commission on these orders. The commission ranges from 8% to 15% when the orders are below 700 and charges 12% to 15% when the orders are below 1000. Grofers also charge a delivery fee when the order is below the amount of Rs. 250.

Relevant read: Albinder Dhindsa: CEO And Co-Founder Of Grofers

Grofers - Funding and Investors

Grofers has been quite fortunate when it comes to its investors and funding. In 2014 Grofers received seed-funding from Sequoia Capital and Zomato Founder Deepinder Goyal an amount of $500k. In the following year, they had Series B round wherein they received 10 million dollars from Sequoia Capital and Tiger Global and Series C, they got another investment from the same investors of about 35 million dollars.

In the same year, they were able to receive a funding of 20 million dollars by Cyriac Roeding – Roeding Ventures, Softbank, Sequoia Capital and Tiger Global in Series D. In 2018, through the existing investors Grofers was able to get funding of around 310 million dollars in Series E and Series F.

Grofers - Startup Challenges

While in just a few years Grofers has got a lot of success in the market, but it had to face many challenges and hiccups too. Whether it was their delayed service or quality issues of the products, Grofers has seen many hurdles in its journey.

Also due to its unsuccessful operations, it had to shut down its operations on major cities like Bhopal, Visakhapatnam, Kochi and so on. One of their initial challenges was also to find the right people in their team which would align with the vision that the company aimed to have and work upon it.

Grofers - Competitors

With no surprise as every other e-commerce platform flourishing with increasing speed, even the online grocery market has grown really big in India. Many big brands and supermarkets are now diverting their interests in selling online and all the existing players need to retain their brands and customers.

Similar is the case with Grofers as the biggest competitors of Grofers are BigBasket, Pepper Tap, and Zopnow. Since the inception of Grofers, it has been the investors' favorite but it has tough competition in the e-commerce market. Also, the e-commerce giant Amazon plans to enter into the online grocery market and is a big threat to brands like Grofers.

Must read: Watasale - India's First Cashier-free Grocery Store

Grofers - Future Plans

Grofers have had sufficient funds to grow now and to establish their brand with huge success. Grofers aims to be the leading brand in online grocery stores and is continuously expanding its range from Grocery to Bakery items, Fruits, Flowers, Baby Care, Pet Care and so on.

Grofers now aims to expand its business to tier II and tier III cities and provide the best experience to its customers. Currently it is on the second position in India on being the best brands of online grocery store after Bigbasket but aims to secure the first position and retain the trust of people in India.

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About Rishabh Rathi

I am a computer science student and freelancer. I love learning new things and challenging myself.
  • Nagpur