Latest News | Grofers Advances IPO Listing Target to 2021-end
Get latest articles and stories on Latest News at LatestLY. Softbank-backed Grofers has advanced its plan to launch an initial public offer by the end of next year after its profitability path zoomed during the lockdown period, a top official of the company said.
New Delhi, Jul 26 (PTI) Softbank-backed Grofers has advanced its plan to launch an initial public offer by the end of next year after its profitability path zoomed during the lockdown period, a top official of the company said.
Grofers co-founder and CEO Albinder Dhindsa told PTI that the company started making operational profit in January and expects to become cash positive by the end of this year.
"Our path to profitability has accelerated during the lockdown, and after achieving operational profitability in January, we are on track to become EBITDA and cash positive by the end of this year. We are observing market sentiments and aim to hit the capital market by the end of 2021," Dhindsa said.
Earlier the company had plans to go public in 2022.
The company closed the financial year with a revenue of around Rs 2,500 crore and the valuation of Grofers is estimated to be close to Rs 6,000 crore.
"As an organisation, we have always channelled our efforts towards providing value to our customers. And, we will continue to do so by staying true to our brand promise of low prices through our focus on building an efficient supply chain and technology-driven innovations," Dhindsa said.
According to the data shared by the company, Grofers shipped 4.4 crore items last month, with 99.7 per cent accuracy and since the lockdown began. It claims to have served 42 lakh households by the end of May.
"Our platform continues to witness high demand and we expect this to stabilize at 30 per cent higher than pre-COVID levels. There has also been a 40 per cent increase in basket size as compared to the pre-COVID era. We are seeing 64 per cent first-time online grocery shoppers and 15 per cent first time online shoppers," Dhindsa said.
During the lockdown, Grofers opened three new facilities and two more are in the pipeline at Bhiwadi and Lucknow.
"We are looking to add 10-15 facilities before the end of this year. We are helping our manufacturing partners with logistics, working capital, and distribution so that we can maintain constant supplies of goods for our customers. We started reverse picks on our own trucks and procured goods from the warehouses of our FMCG partners," Dhindsa said.
Currently, Grofers has 10,000 partner stores to run a fast and lean supply chain from manufacturers straight to consumers.
"Over the last two months, we have hired over 3,000 people for our supply chain operations, and plan to hire another 2,000 warehouses and delivery staff in the coming months," Dhindsa said.
He said that the company has identified and hired delivery and warehouse personnel from the companies operating in industries deeply impacted by the current crisis such as textiles and car rentals.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)