Grofers to enter FMCG segment with revenue target of Rs 2,500 cr by FY19; aims to bring 100 million customers to its platform
Grofers closed FY 18 with Rs 950 crore of sales and is targeting for a stronger growth trajectory in 2019, with a 50% contribution from its private brands
Mumbai: Online grocery firm Grofers on Tuesday said it is entering the FMCG segment and is targeting an overall revenue of Rs 2,500 crore by FY19.
Grofers closed FY 18 with Rs 950 crore of sales and is targeting for a stronger growth trajectory in 2019, with a 50 percent contribution from its private brands.
The company has launched seven new brands under two categories Budget and Popular G-Brands.
"With this, Grofers' private labels expand 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 percent 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 said.
"Through many industry-first initiatives, we have been instrumental in bringing new customers to the e-commerce fold with 15 percent of this customer base being our monthly unique shoppers. Our focus is to serve 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 added.