The COVID-19 pandemic has managed to stall numerous businesses worldwide. However, online grocery delivery firms have managed to amass considerable revenue growth over the months as a result of stern lockdown norms that have ensued consumers to opt for online food & grocery services.
Indian online grocery shopping company, Grofers is one such renowned contender that has recently recorded profitable growth and now plans to launch an initial public offer (IPO) by the end of 2021. Commenting on the move, Albinder Dhindsa, Co-founder & CEO, Grofers, said that the company has recorded significant growth since January and eyes on becoming cash positive by late 2020.
Ever since the imposed lockdown, Grocers has registered accelerated profitability, and now is on track to become EBITDA & cash positive. The company also aims to hit capital market by the end of 2021.
Sources claim that the grocery delivery firm earlier had plans to go public in 2022. It prior closed the financial year with revenues worth around Rs 2,500 crore while its valuation stood close to Rs 6,000 crore.
Dhindsa states that their platform continues to register high demand and they expect this to stabilize at 30% higher than pre-COVID period. User’s basket size has also increased by around 40% compared to the pre-COVID era, while a 64% increase in first-time online grocery shoppers was registered over the months.
Driven by growing demand during the lockdown period, Grofers opened three new facilities with two new currently in pipeline at Lucknow and Bhiwadi. The firm is looking to add 10-15 new facilities prior to late 2020, said Mr. Dhindsa, adding that their firm is helping its manufacturing partners with working capital, logistics, and distribution to maintain constant supplies of goods to customers.
Source Credit: https://www.moneycontrol.com/news/business/ipo/grofers-advances-ipo-lisiting-target-to-2021-end-5600261.html