Grofers not worried about increasing competition with JioMart entry
The online grocery delivery platform, Grofers is not worried about increased competition, the company said in response to Reliance Jio’s entry in the same space. Grofers is backed by SoftBank.
As per news report, the company is focussed on providing its customers the best experience, said Albinder Dhindsa, Co-founder of Grofers. He also adds, “Grofers has built a strong business by focusing on the needs of our four million customers. Competition has always been there and it is healthy for the industry even if it is JioMart”.
Apart from JioMart, there are other online grocery stores like BigBasket, Amazon and Flipkart, commenting on the competition he says that there are still enough scope to grow in this space and the company has not only survived but thrived amid competition
The Gurugram-based company, which is aiming to achieve INR 5000 Cr in gross merchandising value (GMV), believes that its investment in technology, infrastructure, and marketing activities will help it to grow and remain competitive in this burgeoning segment. “Around 50% of a dollar that we spend goes into infrastructure like warehousing, supply chain, and building local partners; 20% into technology; and the rest into marketing,” Dhindsa added.
Although the company is still running in losses, it has achieved profitability in Delhi and Kolkata. Grofers’ Lucknow centre is also going to turn profitable soon, Dhindsa added. In the ongoing ‘Grand Orange Bag Days’, Dhindsa said that the company has invested INR 100 Cr. “The sale will help us to onboard 10 lakh additional new customers and attain GMV of nearly INR 700 Cr in January,” he added.
The company is adding more offline stores and has plans to have 50,000 offline stores onboard in the next two or three years. It is converting local Kirana stores into Grofers-branded stores. These stores will showcase the company’s private label products that are priced 30-40% lesser.
See What’s Next in Tech With the Fast Forward Newsletter
Tweets From @varindiamag
Nothing to see here - yet
When they Tweet, their Tweets will show up here.