Grofers Will Now Deliver Reliance’s 4G Lyf Smartphones

Grocery app Grofers will now be delivering Reliance’s new 4G smartphones, starting from January 29th.

Recently, Reliance Retail started selling 3 models of its own 4G smartphone brand Lyf to complement Reliance Jio’s services that are expected to be launched by March-April.

The three devices – Lyf Earth 1, Lyf Water 1 and Lyf Water 2 will be available on Grofers at over 150 stores across 13 cities – Ahmedabad, Bengaluru, Chandigarh, Chennai, Delhi NCR, Hyderabad, Jaipur, Kanpur, Kolkata, Lucknow, Mumbai and Pune.

Grofers will be sourcing these smartphones from its network of merchants across each of the cities.

 

Grofers Shuts Down Operations In 9 Cities; Says The Market Isn’t Ready Yet

Grofers has shutdown operations in 9 cities including Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam. Grofers is unable to break through the ‘mom-and-pop’ store over there.

List of cities include

  • Bhopal
  • Bhubaneshwar
  • Coimbatore
  • Kochi
  • Ludhiana
  • Mysore
  • Nashik
  • Rajkot
  • Vishakhapatnam

“We ran a series of marketing campaigns including television ads in these cities to test the markets and see if the volume picks up. The smaller cities are not ready for hyperlocal business yet, once they are, we will reconsider our strategy” says Grofers founder, Dhindsa [source].

grofers

Recent development at Grofers:

  1. Grofers CTO has quit.
  2. Grofers is under a lawsuit (by real estate portal, Groffr) over the brand name
  3. Grofers recently raised $120 million in funding from Japan’s SoftBank, Yuri Milner and existing investors Tiger Global and Sequoia Capital.

#IndianStartupData : Grofers Revenue Stands At Rs. 86 lacs At A Loss Of Rs. 4 Crores in FY14-15

Editor Notes : Nothing is as powerful as data and these articles are part of our coverage of #IndianStartupData – i.e. an overview of financial performance of selected Indian startups with a hope that it gives you a good picture of the companies and the ecosystem in general.
Our Mission : A PR-less startup ecosystem which thrives on great products and services!]

Grofers has reported its annual returns with the Registrar of Companies for the financial year 2014-15. The company reported a revenue of INR 86 lacs at a loss of INR 3.9 crores in the year.indianstartupdata

Financial Performance of Grofers

The company reported a revenue of INR 86 lacs in FY14-15 compared to INR 1.8 lacs in FY13-14. Out of INR 86 lacs, INR 73 lacs was revenue from operations. The company realizes its revenue from the commission on sale of products and reimbursement of freight and collection expenses from the vendors.

The company made a loss of INR 3.9 crores in FY14-15 compared to a loss of INR 2.8 lacs the previous fiscal. Largest expense head was ‘Employee Expenses’ at INR 2.2 crores, followed by ‘Manpower Supply charges’ at INR 61 lacs and ‘Advertising Promotional Expense at INR 60 lacs’.

Grofers-revenue

According to Grofers’ website, their mobile app has 1.6 million downloads and it took only 10 days for Grofers to spread across 17 cities in the country. Evidently, the company has been on a major expansion spree in the past few months.[pullquote float=’RIGHT’ color=’#FFF’ bgcolor=’#000′]Largest expense head was ‘Employee Expenses’ at INR 2.2 crores, followed by ‘Manpower Supply charges’[/pullquote]

This has been fueled by 3 rounds of funding received from Sequoia and Tiger Global. As per the documents filed with the Registrar of Companies, it had raised INR 305 crores (~$50 million) till August this year. It was widely reported in the news that Grofers had raised another $120 million in November 2015, from a group of investors led by Softbank, but they have not filed any documents for the same.

» Note that Grofers is currently fighting a lawsuit over the brand name.

Recently, major e-commerce players have jumped in to get a share of the hyper-local pie as well. Flipkart Nearby and Amazon Kirana are operational in Bangalore and are offering groceries at customer’s doorsteps. Ola also launched their Ola Store to provide instant delivery of groceries. Hyperlocal seems to be the buzzword and early entrants (and heavily funded) players like Grofers seem to be at the forefront in this space.

As the segment matures and looks to consolidate, few big acquisitions may be on the cards. For now, they have made lives easier for a large number of people.

About Grofers

Grofers was founded in 2013 by Saurabh Kumar and Albinder Dhindsa. It offers a wide range of products for instant delivery through its mobile app. According to Grofers’ website, it offers more than 1,20,000 products across various categories including fresh produce, grocery, bakery, cosmetics, household and recently electronic goods as well. The app provides the users the choice to order goods from nearby local stores and get those delivered within 90 minutes of placing the order. It is present across 26 cities in India.

Grofers is in its third year of operations. The company had initially started as a B2B service and later switched to the hyperlocal B2C model. It had launched its mobile app last year in December for customers use.

[About the author: Vishal and Anchal form the team that runs the Tofler blog. They like to explore and track companies, their performance and senior management. Tofler (tofler.in) is a Business Research Platform.]

Exclusive : Real Estate Startup Groffr Takes Grofers To Court Over Brand Name Dispute

Real estate startup Groffr has filed a legal case against grocery delivery startup, Grofers against usage of the brand name.

Groffr started as a group buying platform for real estate, electronics products in 2010 while Grofers started in 2014.groffr

As per the High court order (NextBigWhat has a copy of the order):

“Both the plaintiff and defendants are engaged in e-commerce business and they do not have any brick and mortar stores.

Both the parties have a period of three weeks to do the needful for compliance of the present order by giving disclaimer in appropriate language on the websites.

Parties will within eight weeks file original documents in their power and possession which they want to rely upon in the suit. Admission/denial thereof be done within two weeks thereafter by filing an affidavit attaching thereto an index of documents of other side which will contain an additional column of endorsement of admission/denial.”

Grofers is currently rumored to be raising $200mn round and last raised $35mn in April 2015.

The court has given the two companies 8 weeks to file original documents and the next hearing is on Feb 17th, 2016.

Trivia: Do you know the lawyer who is fighting the case for Groffr? BJP’s Nupur Sharma – she fought against Kejriwal in Delhi elections. Other lawyers include Kapil Wadhwa and Ayush Sharma.

Grofers Acqui-hires Bangalore-based Tech Startups SpoonJoy, Townrush [Confirmed]

Hyperlocal shopping app Grofers, has recently acqui-hired teams of Bengaluru based tech start-ups SpoonJoy and Townrush. The move is marked as a part of the scaling-up process at Grofers and is purely an acqui-hire, said Grofers.

According to Grofers, they aren’t looking to continue the existing business lines of these companies, and no significant cash or equity is being exchanged.

With the new acquisitions, Grofers is set out to better their hyperlocal grocery-shopping experience by including newer product categories, along with product discovery features such as enhanced product information, and real time inventory.

“To match the pace of exponential growth in our business, an acqui-hire serves as an efficient way to add talent in a single block. The respective teams have rich experience in building and running early-stage tech companies, which ensures that we get people with the right attitude who will hit the ground running. We are excited to have them on-board,” said Ashneer Grover, Chief Financial Officer, Grofers.

Grofers Acqui-hires Bangalore-based Logistics Startup Townrush

Grofers has acqui-hired Bangalore-based B2B logistics delivery company Townrush.

The acquisition is primarily for the teams with no significant cash or equity-exchange, said an executive from Grofers to TOI.

The acquisition comes after Grofers’s (unconfirmed) acquisition of SpoonJoy, a Bangalore based food-tech startup. Both startups had previously raised seed rounds, and were reportedly in talks to raise fresh funds.

[Source]