Grofers narrows loss to ₹258 crore in FY18

 Grofers narrowed its losses to ₹258 crore last fiscal year after the value of transactions almost doubled in a year at the online grocer, which is leveraging data penetration and adoption of webshopping in India to expand business in a category that until recently remained the monopoly of neighbourhood stores.

In FY17, Grofers had a net loss of ₹268 crore. Revenue from operations rose 58% to ₹53 crore in the year to March 2018, data sourced from research platform Veratech showed. Unlike other e-commerce companies that post revenue numbers on actual sales, Grofers' numbers indicated revenue it earned through retail margin from brands and sellers. The e-grocer said it sold goods worth ₹1,200 crore during last fiscal.

“At an operational level, we expect to break even by June this year. Sales doubled over the past three years and we will close the current fiscal with sales of nearly ₹2,500 crore," said Saurabh Kumar, co-founder at Grofers. "There were high fixed costs related to infras and warehousing initially, but losses will come down on the back of sales volumes.”

About two years ago, the company changed its business model to inventory-led from a hyperlocal delivery start-up.

Grofers said own brands account for more than a third of its total revenues and they help it earn higher margins.

Source:-https://retail.economictimes.indiatimes.com/news/food-entertainment/grocery/grofers-narrows-loss-to-258-crore-in-fy18/68105982