Grofers is an app-based delivery service that connects consumers with local stores. The company started working on a B2B model before becoming a hyperlocal B2C delivery service. In November 2014, it started its offerings to the end customers.In October 2015, Grofers temporarily halted operations in certain parts of NCR due to operational issues. On January 3, 2016, Grofers formally announced scaling back operations in 9 cities.

1. Submitted by:
Rakesh Panghal
BUSSINESS MODEL,MARKETING
MIX,OPPORTUNITIES

2.  Grofers is an on-demand delivery service that connects consumers with local merchants
in the neighborhood.
 It offers a wide assortment of groceries, fresh fruits & vegetables, cosmetics, electronics,
bakery items, baby care products, pet care items, flowers and much more.
 Grofers started its operations with Delhi NCR and currently operates in a total of 17
cities across the India.

3. The company started working on a
B2B model before becoming a
hyperlocal B2C delivery model.
In October 2015, Grofers
temporarily halted operations in
certain parts of NCR due to
operational issues in 9 cities.

4. Products At Grofers

5.  Grofers has raised $46.5 Million till date after 3 rounds of funding by Sequoia
Capital and Tiger Global.
 Grofers was founded on December 27, 2013 by Saurabh Kumar and Albinder
Dhindsa. Saurabh Kumar is a graduate from IIT Bombay and holds an MS
from University of Texas in Austin.
 Saurabh was the head of operations at Rasilant Technologies in Mumbai and prior
to that worked as an engineer at Cambridge Systematics in New York.

6.  Grofers is changing the way local commerce finds its way to your doorstep.
 It is providing hyper-local logistics that enables smoother transactions
between local merchants and consumers.
 They started operations on January 1st of 2014 and within a year, the
company has processed over 150,000 local transactions.
 The biggest advantage we have is a well spread out delivery network that services
over 170 merchants across the three cities.

7. NO, grofers has no inventory and no warehousing. As grofers is into grocery items which are mainly
FMCG and has very less shelf life, there is no use of stocking them upfront. Stocking products may lead to
expiration etc. It also increases costs.
Grofers follows full automated and computerized way. A virtual inventory is uploaded on the serves which
a person can see in the application, and can place an order. Once the order is placed, the product is
purchased from the LOCAL RETAILERS (Kiryanawals) and the delivered to the final consumer.
Because of this virtual inventory, they are saving in the cost of warehousing as well as reducing wastage
risk.

8. There are by 2 ways a customer can pay at Grofers.
1) CASH ON DELIVERY : A customer pays the cash when the executive brings the grocery.
The only disadvantage of COD is, discounts cannot be availed while using COD as
payment option.
2) BY CREDIT CARD / PAYUMONEY : One can easily pay by using his credit or debit
card. The payments by cards are secured by SSL certificates to avoid any payment frauds.
Also, a costumer can choose to pay by payumoney which is an online payment gateway
like CCAVENUE but it gives an additional discount of 1%.

9. Grofers is a hyperlocal service provider. They promise to deliver grocery in 90 minutes. To make this
possible they have designed a order chain management system.
While placing an order via application, a customer enters his or her location in the address section,
once order is placed successfully, that order is received by the
SUB STATION of that area. Once the order is received, it is sent to the field delivery executive, they
have a specially designed application for the executives which serves the delivery information etc. Field
executive procures the groceries from the store, then with the help of GPS enabled device, they locate
the address and deliver the product.

10.  Grofers has raised $46.5 Million after 3 rounds of funding:
 Seed Funding: $0.5 Million from Deepinder Goyal, Founder of Zomato,
and Sequoia Capital in September 2014
 Series A: $10 Million was closed in February 2015 by Sequoia Capital and Tiger
Global
 Series B: $35 Million was announced in April 2015 by Sequoia Capital and Tiger
Global

11. My Green Box: Grofers acquired a Delhi NCR based grocery
delivery mobile app, My Green Box, for an undisclosed
amount.
A 15 member team along with Varun Khurana (Founder - My
Green Box) joined Grofers with Varun Khurana as the CTO.

12.  On demanded delivery start ups Grofers has raised Rs 62 crore ($10 million) in venture
capital funding led by investment firm Tiger Global Management.
 It was the good and reliable amount of money that can nearly help the organization to
grow more in near future.
 Infact , Grofers has decided to expand there manpower so that they can work more
effectively and efficiently.

13. Business Model
 Commission Revenue Model
1. Grofers has tie ups with different merchants .
Since Grofers is making it is possible for these
merchants to access more consumers via the
app, these merchants pay Grofers a
commission of 8% on orders below 500-700
and above it charge 12% to 15% on orders
between 700-1000.
2. Grofers business model generates revenue for
us through merchants. We charge a small
percentage for every sale we get for them. For
our consumers, the delivery is free of cost if
their order is more than 250. Else, we charge
them 49.

14. Sales Revenue
In some product category
Grofers take a part as
revenue from the merchant
as the some part of the total
sale.The revenue depends
upon the agreement between
Merchant and the Grofers.

15. Advertisement Revenue
 Grofers charges merchants for display
there product on top of the app.
Grofers is also charging for search
function in which when a customer
search for a grocery then the paid
merchant’s product is shown first.
Grofers is not charge as on now for the
store listing on Grofers app. It is totally
free of cost.

16. Marketing Mix
Products
1. Grocery
2. Fruits and vegetables
3. Bakery
4. Electronics
5. Beauty
6. Home electronics
7. Baby and kids
8. Pet care
9. Flowers
These are the products categories in which Grofers
deals.

17. Price and Promotion
Price
Grofers earns revenue by Commission making
commission between merchant and customer.
Promotion
Grofers focus on delivering the best customer
service to our customers.We believe there is no
better marketing than having your customer
speak about your service.
1. Promoting through discount offers
2. Promotion through Google Adsense

18. Place
 Currently operating in 17 Indian cities and counting.
1. Agra
2. Chennai
3. Jaipur
4. Mumbai
5. Vadodara
6. Ahmedabad
7. Delhi NCR
8. Kanpur
9. Nagpur
10. Bengaluru
11. Hyderabad
12. Kolkata
13. Pune
14. Chandigarh
15. Indore
16. Lucknow
17. Surat

19. Retail Sector/ Online Grocery Analysis
Online Grocery Market
estimated to be less than
$100M in 2014 is expected to
grow by 25- 30% to cross
$20B by 2020- IDG
Current India Retail Market is $925
Billion that grew by 5.8% in 2010-
2014 is set to reach $1.3 Trillion by
2020- AT Kerney
69% of Retail Industry
is Food and Grocery
Retail industry of India is amongst the top 5 of the world and
Online Grocery Market is expected to grow at a decisive pace in the current future

20. Target Audience Categorization
Women(30- 35) Students (20- 25)

21. Website Competitive Analysis
Websites Global Ranking
Indian
Ranking
Bounce Rate Search Visit %
Total Sites
Linking In
grofers.com 16178 1185 15.50% 10.9 91
localbanya.co
m 19784 1664 34.60% 19.7 157
peppertap.co
m 40185 3188 10.60% 16 53
zopnow.com
19809 1516 32.80% 26.4 173
zopper.com 47692 4431 58.4% 31.6 409
bigbasket.co
m 4607 310 20.9% 19.5 504
onekirana.co
m 139070 14920 44.1% 39.2 30
Grofers.com is the second best online grocery website, with a good Bounce Rate.
However Search Traffic, and Total Sites linking in can be improved

22. Website Traffic Source: Search
Source: SimilarWeb
Bidding on relevant keywords can improve the ratio of Paid Searches

23. Major Competitors
 Pepper Tap
 Major Grocer
 Grocer Max
 Big Basket

24. THANK YOU