‘Cash back’ bait helps Grofers reel in sales worth ₹400 crore

TE Raja Simhan Chennai | Updated on August 21, 2019 Published on August 21, 2019

Albinder Dhindsa, CEO, Grofers SOMASHEKAR GRN

Consumers thronged Grofers, an online grocery space, during the Grand Orange Bag Days (GOBD), with the company bagging nearly two lakh orders daily in the nine-day long sale as against the usual 55,000 orders.

The sale grossed orders worth over ₹400 crore — possibly the highest in the online grocery space.

During the GOBD, which ended on Monday night, nearly 4.8 crore units were sold with a total order of 20 lakh during the nine-day event, said Albinder Dhindsa, CEO and Co-Founder of Grofers.

Total users who shopped in GOBD was 16.4 lakh, of which nearly half were new users, he told BusinessLine. The maximum number of orders reached a peak of over 1,000 per minute on midnight of day one, he added. This sale allows consumers to shop at 100 per cent cash back (up to ₹5,000).

There was an additional minimum 50 per cent off on products such as atta, laundry detergents, shampoos and moisturisers. Additional discounts were offered on shopping with leading bank cards and payment apps. There are offers across categories on the Grofers app.

Delivery partners

The company has over 7,000 delivery partners called Grofers service partners. Small merchants like gyms and parlours also help Grofers deliver the orders. “We are thrilled to see such great response from the second edition of GOBD and to continue being India’s number one e-grocer,” he said.

The overall GOBD gross merchandise value (GMV) achieved was ₹403 crore — double the value when compared with the first edition held in January — while the target was ₹370 crore. “We are confident of GMV touching ₹600 crore in August, given that we have surpassed our GOBD target,” he said.

Over 7,000 small merchants helped Grofers deliver over 20 lakh orders with nearly 250 small manufacturers selling their products during the GOBD event. The average revenue a small manufacturer made during the GOBD was around ₹66 lakh and the total revenue small manufacturers made was around ₹165 crore, which translates to 41 per cent of the overall GOBD GMV, he said.

Published on August 21, 2019
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