Companies

Grofers’ net loss widens to ₹637 crore in FY 20

Forum Gandhi Mumbai | Updated on February 08, 2021

Its 42% high than previous financial year

Grofers’ net loss has widened to ₹637 crore in FY 20, which is 42 per cent higher from the previous financial year. The online grocery firm has reported revenues of ₹177 crore, a 111 per cent jump since the last financial year, according to regulatory filings accessed by BusinessLine from Tofler.

Grofers’ total expenses rose from ₹518 crore for the previous fiscal to ₹814 crore for FY20. Grofers is an e-grocery platform that has a network of over 12,000 partner stores that enable the company to run a fast and lean supply chain - from manufacturers straight to consumers. “For the FY21 fiscal, the company is bracing for the hit because of the Covid-19 pandemic,” it said.

Covid-19 impact

According to Wizikey, a media intelligence and outreach company, Grofers was ranked at position 15 out 20, in its report on ‘Hottest Startups for 2020’. Grofers saw its fair share of ups and downs during the nationwide lockdown, garnering media attention along the way. “A few of them also talked about the shortage of products and availability of slots on the platform,” it said.

However, Grofers won back the trust of people on their safety measures with their dedicated campaign on Zero Contact Delivery. “With a surge in demand, Grofers invested heavily in hiring a large employee base and partnered with various local FMCG brands to bolster up its business,” it said.

“The outbreak of the coronavirus pandemic globally and in India is causing significant disturbance and slowdown of economic activity. The company’s operations have also been initially impacted subsequent to the year-end, however, post unlock, the number of transactions are gradually increasing,” it said.

Based on projection for the next 12 months from the date of the financial statement, “there is sufficient funds to continue its operations and meet its liabilities,” the e-tailer said in its regulatory filings.

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Published on February 08, 2021
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