Grofers narrows loss to Rs 258 cr as sales double in last fiscal.

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 web-shopping in India to expand business in a category that until recently remained the monopoly of neighborhood 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 eCommerce 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 Grofers, we are pleased with our year-on-year growth trajectory. We have been witnessing a surge in revenue, while the operating losses have plummeted. Our gross merchandise value has increased by 150 percent from FY17 to FY18,” Grofers founder Saurabh Kumar said. 
He said with these economies of scale combined with robust growth prospects of the business, the company is confident about strengthening this momentum.
In December, Grofers had said it aims to garner $2.5 billion (around Rs 17,500 crore) in revenue by 2020 as it scales up its private label offerings in the country and focuses on expanding repeat purchases in its platform.

E commerce's contribution to total FMCG sales is currently about 1.3% and is expected to reach 11% by 2030, according to market research firm Nielsen. FMCG companies have also been increasingly launching products exclusively for online platforms.

Last month, the Gurgaon-based company said it became the first online grocer to cross Rs 300 crores in monthly sales to became the largest e-grocery company. Grofers' rival Big Basket grew its sales by 35% to Rs 1,606 crore during FY18 while losses dropped 53% to Rs 310 crore.