Grofers to shop for more cos before IPO

Grofers is looking at acquisitions possibly in the technology products space, CEO Albinder Dhindsa said, as the online grocer prepares for a public listing later this year following a home shopping boom.

It is evaluating e-commercespecific technology products as it builds more efficient supply chains, Dhindsa said in an interview. “We are evaluating businesses we could acquire that help enhance the intangible benefits customers are looking for, i.e. relevant product offerings, convenience and, of course, peace of mind,” said Dhindsa.

Grofers had 12,000 store partners at the end of 2020 compared with 7,000 before the covid outbreak. Local store partners help Grofers in delivering goods. It also added 10,000 sq. ft of warehousing space during the year. The ramp-up in warehousing has helped Grofers make express deliveries in two hours, Dhindsa said. “We opened 23 new facilities during lockdown last year and made a significant amount of investment to meet the higher demand for essentials. We also looked at acquiring more local space in towns and cities and ramped up our partnership with local store partners,” Dhindsa said.

Grofers, which had earlier targeted overall profitability by 2020, now plans to achieve the target this year. Its sales volume grew 80% in 2020, and it is now present in 38 cities. The firm will focus on daily fresh-use categories such as milk, bread and vegetables, and expand verticals such as fresh meat. “Our fresh categories are operational in most cities. Under fresh, meat is something we are still figuring out as to how to grow that category,” Dhindsa added.