Grofers Business Model | How Grofers Makes money

So lot of you asking for Grofers Business model and how Grofers makes money. In this post you will get answers to all you questions regarding Grofers business model. They have changed their business model to cater to the needs of customers across 20+ cities in India currently.

Who are they?
Groffers India Pvt Ltd – An Indian online grocery, one stop destination for all your household needs be it grocery, dairy products, fresh fruits and vegetables, health and wellness many more. They have evolved from logistics business to online grocery.

Founded : 2013
Founders : Albindar Dindsa And Saurbha Kumar
Head office : Gurgaon, India
Company name : Groffers Pvt. Ltd.
Funding : 598 Million Dollar
Primary Funders : Soft Bank Group, Sequoia Capital
Competitor : Big Basket, JIO Mart

Before 2016 Grofers business Model

It was good until 90 minutes delivery system (from customer placing the order using the Groffers App till reaching to their door steps within 90 minutes) couldn’t meet the needs of the customers because of short fall or non availability of product ordered by customers with local stores. Customers use to order looking at the app where the product is available but with local store at times didn’t have it or had less stock availability. It was big set back for Groffers. In the year 2013 – 2016 period they are spread across in 21 cities in India. Later looking at this business model which wasn’t working well in terms of revenue and was tarnishing their image in market because of non completion of orders from customers. They have changed the complete business model in the year 2016.

After 2016 Grofers business Model – Major come back

This is was major come back for Goffers wherein they have introduced in-house productions system eliminating the local store (middle men) and procuring products and having it in their warehouses, whenever required they would dispatch the ordered products by the customer with the duration of one day which earlier was 90 minutes. When the customer places the order in Goffers they either order the products with their partners or procure In – house (manufacture and packaged by gofers themselves) which in return increased their brand value along with that they have discounts involved in it which had increased their sales tremendously they named it Goffers Mother’s choice and Happy Groffers. This business model has come with the cost for Goffers they had to close their outlets from 21 cities to 19 cities across India and running successfully as of now.

How grofers makes money:- Video

You can check the complete business model of Groffers in this video hosted of Mr Thin’s youtube channel.

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