Gurugram-based online grocery platform, Grofers has shifted its focus from the sale of fresh products to private label offerings. As a part of optimizing its business model, the company has reduced its fresh products services in several cities, including Bangalore, where Grofers has a wide customer base.
“Fresh products form 2% of the company’s overall revenues. We will probably come back with it (fresh products) in a few months but for now, we need space for our growing private label business,” said Albinder Dhindsa, CEO, Grofers. The new strategic move is likely to bring more business to the company.
Grofers had recently raised $61.6 Mn (INR 400 Cr) in a round of funding led by SoftBank for a 35%-40% stake. It is now looking forward to become the best in online grocery segment, where its battling with BigBasket and Amazon.
The company is now focused on establishing its foothold in Delhi/NCR by investing in its supply chain and technology. However, the company claims to be profitable in Delhi on a per-order basis.