Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Blinkit (Grofers).
As we move forward in the world of modernisation, we tend to scroll the screens of our mobile phones too often and for many reasons. We swipe our mobile screens to shop, learn, relax, and fulfill an endless list of requirements that we need them for. Using our mobile phones has surely been quite a help, they have literally made the world seem like an easily navigable space. Our daily needs and requirements are now nearer than ever with mobile phones. Today, we don't need to go out and purchase our daily goods, grains, and veggies from the market. All we need is our mobile phone with an internet connection!
What is the first thing that comes to your mind while talking about ordering daily goods and groceries? Obviously, it is the list of fruits, vegetables, and grocery needs that you are going to order but soon after that, it is the application or the website that is to come up next in order!
There are numerous applications, websites, and companies now from where you can order, among which Grofers is one of the most prominent names. This e-commerce company has offered us with variety of daily goods that made our lives easy.
Softbank-backed online grocery delivery unicorn Grofers has been rebranded to Blinkit to keep up with its motto of delivering groceries in the blink of an eye.
Check this article to know more details about Grofers, Founders and how it started, business model, revenue model, funding and investors, challenges, competitors, and more.
Grofers - Company Highlights
| Startup Name | Grofers |
|---|---|
| Headquarter | Gurugram, India |
| Sector | Online Shopping/ecommerce /Grocery Delivery |
| Founders | Saurabh Kumar, Albinder Dhindsa |
| Founded | December 2013 |
| Valuation | $1.01 billion (September 2021) |
| Revenue/Turnover | $302.98 mn (Rs 2289.2 crores in FY20) |
| Total Funding | $1 billion (March 2022) |
| Area Served | India |
| Parent Organization | Grofers International Pvt Ltd |
| Website | blinkit.in / grofers.com |
Grofers - About
Grofers - Founders and Team
Grofers - Startup Story | How it started?
Grofers - Name, Tagline and Logo
Grofers - Mission and Vision
How do Grofers deliver their orders in 10 minutes?
Grofers - Business Model
Grofers - Revenue Model
Grofers - Funding and Investors
Grofers - Revenue and Growth
Grofers - Startup Challenges and Controversies
Grofers - Competitors
Grofers - Future Plans
Grofers - About
The Gurugram based Indian on-demand online grocery delivery service Grofers was founded in the year 2013. This e-commerce startup platform provides a variety of daily needs products ranging from groceries, bakery items, baby care items, and many more to its customers.
From the mobile application of Grofers, the customers can buy and order their products at a scheduled time and the Grofers employees deliver these items to the customers. Currently, the company operates in over 28 cities in India as Blinkit.
Grofers - Founders and Team
Grofers was founded by two IIT Graduates Albinder Dhindsa and Saurabh Kumar.
Albinder Dhindsa
Albinder Dhindsa is one of the founders and the CEO of Blinkit, as Grofers is now known as. Dhindsa is an alumnus of the Indian Institute of Technology, Delhi, after which he completed his MBA from the Columbia Business School. Dhindsa first started his career as a Transportation Analyst at URS Corporation, after which he worked with Cambridge Systematics and UBS Investment Bank as an Associate and Senior Associate. Dhindsa then joined Zomato where he worked for more than 2.5 years as the Head of International Operations. He eventually left the company to co-found Grofers (now Blinkit) in December 2013.
Saurabh Kumar
Saurabh had been another founder of Grofers. He was a B.Tech, Civil Engineering student of IIT Bombay. He eventually went for an MS, Transportation Engineering that he completed from The University of Texas at Austin. Saurabh also worked with Cambridge Systematics where he first met Albinder. Kumar left the company to work as an Associate and a COO in two different companies - Opera Solutions and Rasilant Technologies Pvt Ltd., finally founding Grofers/Blinkit with Albinder, which came live with its app in December 2014. Saurabh had left Grofers on June 18, 2021. Kumar next founded Warpli, an e-commerce platform that is often tagged as the "e-commerce of future" in September 2021.
Grofers houses somewhere around 2000 employees.
Grofers - Startup Story | How it started?
Albinder, after his graduation, worked as a transportation analyst at URS Company in the USA. While working he met Saurabh Kumar and kept in touch with him with absolutely no intentions of any entrepreneurial motives.
Both Albinder and Saurabh found that there was a huge gap in the delivery industry. They both thought to tap the opportunity as it was the time when many startups were emerging. They felt the need to sort the unorganized hyperlocal space in the transaction made between merchants and consumers.
That is when they started to build a base for their startup. Their idea was to provide a one-stop solution for the customers' local delivery needs by having on-demand pickup and drop services. This was to facilitate the logistics from the shops around their locality like grocery stores, medical stores, and restaurants for the consumers. Initially, both of them also facilitated the delivery of groceries for customers from the neighborhood stores and supermarkets.
Piyush Mishra
Grofers - Name, Tagline and Logo
Blinkit is the new name of Grofers after the completion of its rebranding attempt on December 13, 2021. The coinage of the new name of Grofers is in line with the aim of the company to deliver groceries in an instant, i.e., in the blink of an eye.
"Lets Blink it" or #letsblinkit goes the tagline of the brand.
The previous name of Blinkit was Grofers, which was a portmanteau of two words – Grocery and Gophers, which particularly meant a person who runs errands. The tagline of Grofers is ‘We get it’ which was initiated with an online advertisement campaign.
Grofers - Mission and Vision
Blinkit, which was earlier called Grofers, now has a new mission statement that reads “instant commerce indistinguishable from magic.” Blinkit solely believes in serving its customers with instant grocery deliveries within 10 minutes. Prospering in the quick commerce space is what Blinkit currently envisions.
How do Grofers deliver their orders in 10 minutes?
Two months ago, in June 2021, Grofers announced that it has already revamped its delivery service, which will make the deliveries within 10 minutes of the order being placed online. The popular online grocery marketplace also assured that in cities where Grofers is present, the company will make sure of delivering the orders in under 10 minutes within the next 45 days. This promise of 10-minute delivery has received huge criticism from people all around the country, who have accused Grofers of "exploiting" their workforce to make such a promise a reality.
The hate that the company has received was fittingly replied by one of the founders of Grofers, Albinder Dhindsa, who said,
"It breaks my heart that instead of celebrating innovation coming from India, some of us stay cynical of people who are trying to break the status quo."
While clarifying how Grofers makes its 10-minutes delivery possible, Dhindsa mentioned that the company has its partner stores within 2 km of the customers, which is a big plus. The company has more than 60 partner stores in Delhi and has grown to over 30 partner stores in Gurgaon already, along with an adequate number of partner stores also in the other serviceable cities like Mumbai, Kolkata, Bengaluru, etc.
Dhindsa further pointed out in his Twitter post that the stores are so densely located that 90% of the orders can be delivered by Grofers easily within 15 minutes even if the drivers drove at 10 km/hr. Moreover, the in-store planning and management of Grofers, empowered by the advanced technologies, are so organized now that they can pack their orders within 3 minutes of receiving the order. Also, the riders of Grofers are "not (dis)incentivised to deliver orders fast. They do it at their own pace and rhythm", said Dhindsa. The founder concluded by citing the last 2 months' data since they started the 10-minute grocery delivery process and claimed that Grofers has seen no reported rider accidents.
Here's what the founder has posted via his Twitter handle on August 28, 2021:
I want to chime in about the hate we are getting for delivering groceries in 10 minutes... pic.twitter.com/RNhFvd6ojV
— Albinder Dhindsa (@albinder) August 28, 2021
Now as Blinkit , Grofers is doubly geared up to deliver groceries in the blink of an eye. Albinder Dhindsa, Co-founder CEO of Blinkit (ex-Grofers) on being asked why the keen focus on quick commerce, said that the 10-minute delivery that Blinkit promises should not just be possible but a must in the fast-paced life that people are living now. This will help them save time for more important things.
Grofers - Business Model
Grofers work on a marketplace business model and might also be referred to as the Hyper-Local on-demand logistics system. It aims to replace the need of consumers traveling to the local shops to buy consumer goods rather than wanting them to order online. This startup does not own any grocery stores or warehouses.
It just partners with the local grocery shops in the city and then sends their delivery boys to pick the items ordered by the consumers from these stores. They accept orders from their mobile application or the website. This tie-up system helps the local grocery shop owners get more orders and also Grofers make a profit from these orders as the company charges some commission.
Here are some major insights into the inventory-based Blinkit business model:
Key Partners
Grofers, or Blinkit, as it is now called, partners with local merchants and brands, logistics partners, payment providers, investors and its acquisitions.
Key Activities
Some of the major activities that Grofers is involved includes:
- It delivers groceries
- Does warehousing
- Manages supply chain
- Maintains its platform and technology
- Takes care of shipping
- Manages logistics
- Develops innovative software and products
- Services customers.
Key Resources
Blinkit uses a bunch of resources that includes:
- Cutting-edge technology
- Intellectual properties
- Advanced IT and communications infrastructure
- Streamlined channels of delivery
- A network of local merchants
- Funding rounds.
Customer Segments
Grofers' assumes all of the individuals, who are residing in India as its customers, including the local merchants.
Advertising Channels
Grofers or Blinkit markets through blogs, social media channels and also relies heavily on the word of mouth marketing.
Grofers - Revenue Model
The revenue model of Grofers is similar to the commission-based revenue model. Grofers has tied up with the local shop owners and merchants for grocery and daily needs goods in the local areas. Grofers charges these merchants some commission on these orders. The commission ranges from 8% to 15% when the orders are below 700 and charges 12% to 15% when the orders are below 1000. Grofers also charge a delivery fee when the order is below the amount of INR 250.
Piyush Mishra
Grofers - Funding and Investors
Grofers has been quite fortunate when it comes to its investors and funding. To date, Grofers has raised a total of around $1 bn in funds. The recent fundraising round was led by Zomato on March 11, 2022, where the foodtech major infused $100 mn into Blinkit. The quick commerce unicorn has also confirmed that the $100 mn fundraise is the first tranche of a $400 mn funding round and that it will see more funds coming throughout next week. However, the foodtech giant extended a $150 mn loan in its stead.
The online grocery delivery service startup raised $100 million from Indian food delivery giant, Zomato, which was approved on August 16, 2021. This helped the online grocery delivery major to reach a valuation of more than $1 billion and join the unicorn club. Grofers is currently valued at $1.01 billion after the latest round. The quick commerce unicorn is looking to raise funds close to $500 mn from its existing investor Zomato via a fresh round of funding.
Here are the Grofers' Funding Details to date-
| Date | Amount | Round | Lead Investors |
|---|---|---|---|
| March 16, 2022 | $150 Million | Debt Financing | Zomato |
| March 11, 2022 | $100 Million | - | Zomato |
| September 29, 2021 | $16.7 Million | - | KTB Ventures |
| August 17, 2021 | $100 Million | - | Zomato |
| November 13, 2020 | $55 Million | Venture Round | SoftBank Vision Fund (SVF) and other existing investors |
| December 31, 2019 | - | - | - |
| November 18, 2019 | $43.04 Million | Corporate Round | Grofers International Pte Ltd |
| October 29, 2019 | $18.83 Million | Series F | Bennett Coleman and Co Ltd |
| August 19, 2019 | $70 Million | Series F | Softbank Vision Fund |
| July 15, 2019 | $10 Million | Series F | Abu Dhabi Capital Group |
| May 15, 2019 | $220 Million | Series F | Softbank Vision Fund |
| May 16, 2018 | $53.81 Million | Series E | Softbank Vision Fund |
| October 25, 2017 | $12.91 Million | Series D | Grofers International |
| September 1, 2017 | $839K | Debt Financing | Trifecta Capital Advisors |
| November 2015 | $120 Million | Series D | Cyriac Roeding – Roeding Ventures, Softbank, Sequoia Capital and Tiger Global |
| April 2015 | $35 Million | Series C | Sequoia Capital |
| February 2015 | $10 Million | Series B | Sequoia Capital and Tiger Global |
| December 2014 | $500k | Seed Round/Series A | Sequoia Capital, Deepinder Goyal |
Grofers - Revenue and Growth
Grofers (presently Blinkit) is currently delivering 1.25 lakh orders on a daily basis. Blinkit believed that it could be a quick commerce company and deliver all the products of daily needs to the consumers and the company currently has currently reported processing 1 million+ orders in a week, across 12 cities in India, as of December 13, 2021.
With over 5000 products assorted on its website, which are ready for home delivery in as fast as 10 minutes, Grofers is already one of the largest e-grocery companies in India and has witnessed quite a growth all along the way.
The revenues of the company have witnessed a laudable growth of around 78.52%. Earlier recorded at Rs 1,282.3 crore in FY19, the company's revenue from operations was revealed to be Rs 2,289.2 crore in FY20.
The total expenses of Blinkit ballooned by 79.4% to Rs 3,560.3 crore in FY20 from Rs 1,984.6 crore in FY19. This means that Grofers spent Rs 1.55 to earn a single rupee of revenue during FY20. Though the Albinder Dhindsa-led firm increased its losses by 68.2% to become Rs 1,181.2 crore in FY20, which was earlier listed at around Rs 702.3 crore, the EBITDA margin of the company remained almost stable at -48.6%.
The company has last reported to pivot to a 10-minute grocery delivery platform from being an inventory-led stock-up ecommerce business. Though it is still time to discover the impacts of this pivot, the financial results of Blinkit for FY21 speak of the company's 26.2% growth, where the Blinkit revenue grew from Rs 2160 crore to Rs 2725 crore.
Blinkit Revenue Breakdown
| Blinkit Revenue Verticals | FY21 | FY20 |
|---|---|---|
| Sale of Goods | Rs 2464.82 cr | Rs 1947.46 cr |
| Warehousing and Delivery Services | Rs 64.33 cr | Rs 50.23 cr |
| Marketplace Commisions | Rs 115.52 cr | Rs 99.05 cr |
| Other Operating Revenue | Rs 3.46 cr | Rs 1.49 cr |
| Advertising Services | Rs 76.87 cr | Rs 61.77 cr |
| Total Revenue | Rs 2725 cr | Rs 2160 cr |
Blinkit Expenses Breakdown
| Blinkit Expenses Verticals | FY21 | FY20 |
|---|---|---|
| Purchase of Goods | Rs 2340.42 cr | Rs 2108.21 cr |
| Outsourced Manpower Cost | Rs 123.60 cr | Rs 163.67 cr |
| Expenses of Employee Benefits | Rs 58.40 cr | Rs 65.63 cr |
| Rent, Repair and Utilities | Rs 27.77 cr | Rs 67.58 cr |
| Advertising Promotional Expenses | Rs 94.80 cr | Rs 200.40 cr |
| Other Operating and Admin Expenses | Rs 147.32 cr | Rs 77.83 cr |
| Freight and Packaging Expenses | Rs 134.40 cr | Rs 146.06 cr |
| Costs of Technology and Payment Gateway | Rs 58.40 cr | Rs 65.63 cr |
| Total Expenditure | Rs 3299 cr | Rs 3105.8 cr |
The EBITDA margins of the company came down from -38.47% to -16.48% during FY21. Though Blinkit improved on its EBITDA, the company has an accumulated loss of Rs 6126.6 crore ($817 million) when last reported in March 2021.
Blinkit is looking forward to a merger with Zomato in a share-swap deal. As per reports dated March 15, 2022, Zomato would be approaching the CCI to further the talks of a merger with Blinkit. The merger talks said that the largest investor of Blinkit, Softbank will hold 4-5% stakes in the foodtech giant. According to the sources close to the matter, the deal is to be finalised in a 10:1 ratio, which will reportedly value Blinkit somewhere around $700-800 mn, slightly lower than $1 bn, which was the recent valuation of Blinkit.
Grofers - Startup Challenges and Controversies
While in just a few years Grofers has got a lot of success in the market, it had to face many challenges and hiccups too. Whether it was their delayed service or quality issues of the products, Grofers has seen many hurdles in its journey.
Also, due to its unsuccessful operations, it had to shut down its operations in major cities like Bhopal, Visakhapatnam, Kochi, and so on. One of their initial challenges was also to find the right people in their team who would align with the vision that the company aimed to have and work upon it.
Blinkit had splurged around Rs 600 cr between November and February to expand its business and has also included numerous discounts for its users. However, this strategy of offering huge discounts seems to be backfiring. This is why Blinkit is looking to cut costs and corners, thereby reducing its cash burn.
Grofers had been facing numerous backlashes from critics with the start of the New Year 2022. Blinkit sacked its employees across some of the major cities including Mumbai, Hyderabad, and Kolkata on March 14, 2022. This firing exercise has reportedly impacted around 5% of its total workforce. Blinkit has also been reported to be delaying its vendor payments lately.
Varad Kitey
Grofers - Competitors
With no surprise as every other e-commerce platform flourishes with increasing speed, even the online grocery market has grown really big in India. Many big brands and supermarkets are now diverting their interests to selling online and all the existing players need to retain their brands and customers.
Similar is the case with Grofers. Some of the biggest competitors of Grofers are:
- BigBasket
- Swiggy
- Zepto
- Pepper Tap
- Zopnow
- Dunzo and more.
Since the inception of Grofers, it has been the investors' favorite but it has tough competition in the e-commerce market. Also, with the entry of the e-commerce giant Amazon into the online grocery market, it is always a big threat to brands like Grofers.
Shubham Kumar
Grofers - Future Plans
Grofers boasts of having around 13% of the total market share, thereby being the third-largest of the online grocery delivery platforms after Bigbasket and Amazon. Bigbasket is leading the market with around 37% of the total market shares, after which comes Amazon with its 15% shares.
Grofers strives to be a market leader in the online delivery sector and is continuously expanding its range, which has widened from grocery to include bakery items, fruits, flowers, baby care, pet care, and so on. The business is not looking to expand its business to tier II and tier III cities and provide the best experience to its customers. Blinkit, as it is rebranded, Grofers is already known as one of the largest players in the e-grocery space and is looking to be "100x this size in the next five years", as per the Blinkit website.
FAQs
How do Grofers make money?
Revenue Model For Grofers. The company provides a service to its users with its inventory-based model. In return, Grofers takes a commission on every order, which can be anywhere from 8% to 15%.
Are Grofers products good?
Grofers is authentic. The product quality is good as well the price is less than compared to other online sites.
Can I sell on Grofers?
You need to register with Grofers and have a seller account with them. Grofers seller registration will give you a credible platform and a huge customer base to sell your products.
How does Grofers work?
Grofers is an e-commerce marketplace for your daily shopping. It allows you to shop from your favorite store in your neighborhood and get delivery within 10 minutes. You can shop for Groceries, Fruits & Vegetables, Bakery items, Flowers, Meat, Pet Care, Baby Care, and Cosmetics products with just a few taps.
How long does Grofers take to deliver?
Grofers rebranded as Blinkit aims to deliver orders within 10 minutes.
Is Grofers rebranded?
Yes, Grofers has successfully completed a rebranding attempt on December 13, 2021, when the brand published its new name as "Blinkit".
Source :- https://startuptalky.com/ Author :- Rishabh Rathi Date :-March 29, 2022 at 02:43PM