Online grocery firm Grofers has announced that it is entering the FMCG segment and targeting an overall revenue of Rs 2,500 crore by FY2019.
The company recently launched seven new brands under two categories Budget and Popular G-Brands.
“With this, Grofers’ private labels expands to 250 food and non-food products for its consumers. With this significant business expansion, Grofers aims to drive the next wave of growth for e-commerce sector by bringing the next 100 million customers to its platform,” it said in a statement.
Grofers’ range of private label is priced approximately 5 to 50 per cent lower than the market price for popular brands in these categories, it claimed.
The brand is bullish on growth with a revenue target of Rs 2500 crore and roll out of over 500 SKUs for FY19, it added.
Its presence would be in food products including tea, fruit jam, muesli, tomato ketchup, corn flakes, rose shahi sharbat and household categories of detergents, household care, oral care, tissues and disposables, kitchen tools and accessories, furniture and storage, among others.
“Our foray into the FMCG segment uniquely differentiates and positions us in the e-grocery business. This vertical expansion is key to drive our next phase of growth in India. In the last five years, we have received an overwhelming response from our customers and experienced tremendous growth,” Grofers Co-Founder and Chief Executive Officer Albinder Dhindsa was quoted by news agency PTI as saying.
“Through many industry-first initiatives, we have been instrumental in bringing new customers to the e-commerce fold with 15 per cent of this customer base being our monthly unique shoppers. Our focus is to service the families of India who are yet to experience the world of e-commerce and our target is to bring the next 100 million new customers to e-commerce industry through our platform,” he further told PTI.
Grofers closed FY 18 with Rs 950 crore of sales and is targeting for a stronger growth trajectory in 2019, with a 50 per cent contribution from its private brands.
In March, Grofers said it had raised Rs 400 crore in a fresh funding round led by Japanese conglomerate SoftBank Group. A significant amount of this money was to be invested towards building infrastructure and technology and efficient supply of chain management to achieve deeper penetration in existing Grofers cities.
The e-grocery company raised a total of $226.5 million in the funding round which also saw other investors, including Tiger Global and Apoletto Asia.