Grofers pursues profit, targets IPO in 3 years

Kolkata: Online supermarket major Grofers India is pursuing profitability by consolidation and focusing on doubling its sales to Rs 5,000 crore by FY'20. The company is also gearing up to hit the capital market with initial public offer (IPO) within the next three years.

"We have closed FY'19 with Rs 2,500 crore sales. At present our monthly sales have touched Rs 225 crore, growing at 8.5 per cent month on month. We expect around Rs 5,000 crore sales in the current fiscal," Grofers co-founder & CEO Albinder Dhindsa told PTI.

The online player that was last valued at $600 million has moved out of hyper-local delivery model 3 years ago.

The decision not only aided its survival but also helped it to thrive year after year, Dhindsa indicated. The same strategy helped the company to inch closer to break even in major cities in the northern and eastern parts of the country.

Grofers, despite raising $60 million recently, remained focused on consolidating its presence in 12 cities (where it is already present) across the country to push profitability instead of aggressive geographical expansion.