Page 51 - ABFI March 19 issue

News

Round-up

How Grofers is morphing

into an FMCG company

hat started as an online SKUs every year mostly under
Wplatform to deliver processed food.
groceries to Internet savvy Saurabh Kumar, Co-
customers, Grofers is slowly Founder of Grofers said,
and steadily transforming “We are seeing ourselves
itself into a consumer products as an FMCG company. We
company with a focus on discovered that there is a huge
profitability. This is part of its potential in this segment as it
strategy to take on archrival helps create difference price
BigBasket and other biggies points across all the categories the private brands and hence online players at the moment
such as Amazon and Flipkart for all kind of consumers.”
that are lately focussing on the About 40 per cent of the there is some time before we even as grocery retailers are
food and grocery segment. company’s total revenues at turn profitable at the company not impacted by the current
For the last 15 months, present comes from private level,” Kumar said. FDI regulation for ecommerce
the Tiger Global-backed brands, which also results in Grofers gross sales for companies.
consumer-tech company has higher margins of 25-30 per FY 18 stood at Rs. 1,000 crore
been focussing on creating cent compared to 15-20 per with a current run rate of half ‘Good prospects’
private brands across the cent margins for branded a billion dollar and looking to “No one is looking to exit
FMCG (fast moving consumer products such as Hindustan hit a billion dollar by end of the food and grocery segment
goods) categories such as food Unilever, Procter & Gamble, this fiscal. at the moment. We will see
and personal care. Nestle among others. Besides, private labels, the more investments in this
company’s subscription model space,” Kumar added.
Product range Growth phase is also pushing the revenue As per Nielsen, online
Of the total 2,500 stock Kumar said that higher growth for Grofers with about grocery space is likely to gain
keeping units (SKUs) that margins also lead to higher
Grofers sells on its platform, chances of getting onto the 70 per cent sales coming from traction as e-commerce picks
about 750 SKUs come from profitability track. “We have this channel. up. Ajay Macaden, Executive
seven of its own brands. already operationally broken Indicating that the push Director at Nielsen, said at the
Chakki Fresh atta (wheat flour) even in most of the cities we to do private labels is being India Food Forum that, the
is its largest selling product on are present. However, we are driven by its investors, Kumar market is expected to touch $5
the platform. The company is on a growth phase right now said that food and grocery is billion by 2020 from $1 billion
looking to add about 100-150 and will continue to invest on an interesting space for the in 2017.

Swiggy’s parent puts Rs 31 Sunder, the chief operating
officer of Swiggy.com, said in
crore in ready-to-cook food a statement, “Fingerlix, under
the able leadership of Shripad
& Shree, has built a much-
co Fingerlix loved brand with a unique
model of creating products
which we believe will unlock
nline food startup It is looking to raise Rs 63 a new category of convenience
OSwiggy’sparentcompany crore in this round. for customers.” Fingerlix was
Bundl Technologies has Founded in 2016 by looking at expanding and Last year it had raised Rs 8.5
invested Rs 31.2 crore in ready- Shree Bharambe and Shripad had clocked sales of about crore from venture debt firm
to-cook food startup Fingerlix, Nadkarni, the startup has 6,000 units per day, touching Alteria Capital, which is also
according to filings with raised more than Rs 135 crore over Rs 12 crore in annual an investor in Swiggy. Accel
the Registrar of Companies so far. revenue. The company did not Partners has also invested in
sourced from Paper.vc. Nadkarni said, “Ready- disclose its current numbers. both Swiggy and Fingerlix.
The Mumbai-based to-eat food is a fast-emerging
startup, which is in the process and a significant segment, To subscribe
of raising funds in a Series-C given the changing lifestyles of
round, has also mopped up urban millennials. The current AgriBusiness &
funds from existing investors, round will help us address this Food INdustry
including Accel Partners and emerging consumer segment
Zephyr Peacock. via multiple channels.” Vivek Call : 011-29535848 or E-mail : mediatoday2@gmail.com

AgriBusiness & Food i ndustr y March 2019 51