<ul><li><keyword id="1640900" type="PERSON" weightage="20" keywordseo="Online-grocery">Online grocery</keyword> segment will grow by 55% to reach 1.2% of the market by 2023, said a report by RedSeer and <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword>. </li><li>Today online grocery startups account for 40% of total e-commerce funding in India. </li><li>Startups in the online grocery sector have raised $665.70 million in funding in 2019 so far.</li></ul>The Indian online grocery segment is growing fast and how. Currently the online food and grocery retail holds a miniscule part of online retail with only 0.2% penetration. But it is predicted to grow by 55% to reach 1.2% of the market by 2023, said a report by RedSeer and BigBasket. The market size of this segment will also expand to $10.5 billion, the report predicts. The customers’ trust on online shopping along with the growing presence of e-grocery players will drive this growth in the sector, added the report. “The online grocery segment has been one of the fastest-growing e-commerce verticals in India and will continue to flourish in both metro and non-metro cities in the years to come,” said Hari Menon, Co-Founder and CEO, bigbasket. Online grocery vs E-commerce in India As Indians are used to visiting the kirana store in the next lane, online grocery has been growing slowly since onset in 2010. In the past few years however it picked up speed. As the number of e-commerce users grew it had a slow but steady effect on online grocery purchases. From a barely any presence in 2010, today online grocery startups account for 40% of total e-commerce funding in India. 
 
 
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 So, what led to this growth? “The online grocery space in India has accelerated due to the increasing penetration of internet in millions of households across the country, rise in smartphone usage, enhanced customer comfort and trust in e-tailing and a better value for money for customers in online vs offline stores. Besides, availability of value for money products, better savings vs offline stores and cashback led by subscription-based programmes further ensure affordable pricing and scheduled delivery to make this space exciting,” said Albinder Dhindsa, Co-founder, <keyword id="2466939" type="PERSON" weightage="20" keywordseo="Grofers">Grofers</keyword>. Startups in the online grocery sector have raised $665.7 million in funding in 2019 so far, with Bigbasket turning a unicorn. Grofers, a soonicorn (soon to turn unicorn) made a comeback with a $200 million funding led by Softbank. Here are the top 20 funded startups in the e-grocery segment. 
 
 
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 Tier 2 &amp; 3 cities to lead the next phase of e-grocery Online grocery’s dream to reach $10.5 billion by 2023 will not be fuelled solely by urban growth. A big share of this will come from Tier 2 and 3 cities. Grofers co-founder Dhindsa believes that the next big thing in e-grocery is increasing penetration of e-commerce in tier-2 markets and amongst lower SECs (socio-economic classification) in metros. “E-grocery will bring more shoppers into e-commerce as a whole and already 15% of our new users every month are first time online shoppers. Growing disposable income of the consumers in Tier II markets and the adoption of 4G has already laid a strong foundation for the next wave of growth for e-commerce,” he said.

Online grocery may become a $10 billion industry by 2023 but even then only one in 100 Indians will be buying

<ul><li><keyword id="2466939" type="COMPANY" weightage="20" keywordseo="Grofers">Grofers</keyword> has raised over $200 million from Softbank Vision Fund. </li><li>In 2019 itself, three Indian startups have already entered the unicorn club, Grofers could soon become the fourth. </li><li>Over the last two years, Grofers has grown by a staggering 800% to achieve an annual revenue of $400 million. </li></ul>Grocery retail startup Grofers has today raised over $200 million from Softbank Vision Fund. With this funding, its reported valuation is set to be almost $1 billion – just a few steps away from being a unicorn. The series F round also saw participation from new investor, KTB, and along with existing investors – Tiger Global Management and Sequoia Capital. The formerly reclusive Indian unicorn club now has many more members in it. In 2019, three Indian startups have already entered this club, which is exclusive for startups valued at and over $1 billion. Grofers could be the second grocery startup to garner this valuation. Its competitor <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword> hit this number in March 2019. Staggering Growth According to the company's statement, over the last two years, Grofers’ has grown by a staggering 800%, to achieve an annual revenue of $400 million. “We are building Grofers for the millions of Indians who cannot buy groceries at low prices due to multiple middlemen and absence of large aggregators,” said Albinder Dhindsa, Co-Founder and CEO of Grofers in a statement. “This latest investment will help scale the company to ensure many more customers can access best quality products at best prices,” he added. Grofers plans to use new funds to expand to new markets across the country. The funding will help the startup build its supply chain network, warehousing infrastructure and private label products, and ensure a steady increase in product range. The investors are banking on growth in the Indian grocery segment which is expected to touch $869 billion by 2023. In March, BigBasket raised funding from its existing investor Alibaba along with South Korean firm, Mirae Asset. Meanwhile, yet another Indian unicorn Swiggy, too announced its foray into grocery segment, with Swiggy stores. Corporate giant <keyword id="6355199" type="COMPANY" weightage="20" keywordseo="reliance-industries">Reliance Industries</keyword> which owns and operates <keyword id="58448" type="COMPANY" weightage="20" keywordseo="Reliance-Retail">Reliance Retail</keyword>, is keen on joining the bandwagon as it has acquired Mumbai-based hyperlocal service, Grab. See Also: <a href="https://www.businessinsider.in/bigbasket-joins-unicorn-club-with-a-fresh-investment-of-150-million/articleshow/68624890.cms">Indian grocery startup Bigbasket enters the unicorn club with a reported $2.3 billion valuation</a> <a href="https://www.businessinsider.in/swiggy-and-bigbasket-will-battle-softbank-and-mukesh-ambani-in-online-grocery/articleshow/68204293.cms">Online grocers are back in business in India with billions more to burn – and that may be good for consumers</a>

Grofers delivers a funding at the door of the unicorn club

<ul><li>After the government in states like Maharashtra, Bihar, Tamil Nadu and Delhi instructed schools, colleges and malls to remain shut till March 31, <keyword id="1640900" type="PERSON" weightage="20" keywordseo="Online-grocery">online grocery</keyword> stores like <keyword id="2466939" type="PERSON" weightage="20" keywordseo="Grofers">Grofers</keyword>, <keyword id="964794" type="COMPANY" weightage="20" keywordseo="BigBasket">BigBasket</keyword> and Supr Daily have seen an upsurge in orders for essentials. </li><li>Online grocery delivery majors have seen an increasing demand for products such as sanitisers, masks, atta &amp; dal, fruits, and vegetables.</li><li>Platforms are also advising customers to avoid using cash, which can be a source of transmitting the virus between individuals. </li></ul>As the number of people infected by Covid-19 keeps increasing with each passing day, there has been an increase in the demand of orders from online grocery stores in the past few days. The government in states like Maharashtra, Bihar, Tamil Nadu and Delhi have instructed schools, colleges and malls to remain shut till March 31. The government is also advising social distancing, with a lot of organisations asking its employees to work from home. The closure of malls, and with it, a lot of supermarkets, has led to a direct increase in the order of staples online. Much like the US and UK, that witnessed a huge surge in online orders for essentials, in India too, a lot of online marketplaces like BigBasket, Future Group and Grofers are witnessing an increase in demand, with most people ordering for staples. Supr Daily, that delivers daily essentials like milk, bread, fruits and vegetables, told its customers that it will deliver till 9 a.m. instead of the usual 7 a.m. due to increased demand. In the past few days, BigBasket has witnessed a 2X increase in its traffic and its revenue. BigBasket said in a statement that they are witnessing a 15-20% increase in the basket value. Increased demand has been for essentials such as staples, atta &amp; dal, fruits, and vegetables. However, it said that it is in control of the supplies, given that a predominant share is from its private label products. The platform is currently not facing any shortage for FMCG branded products except in the case of sanitisers. In the last 30 days, as per Google Trends, there has been a rise in web search for sanitisers. 
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 A spokesperson from the Future Group that owns Big Bazaar and Easyday reported a similar increase in their online orders. "We have seen an upswing in the demand for daily essentials from our customers in certain geographies. We are making sure that we are managing our stocks and supply chain in a way that meets all our customer needs. We are also following and complying with various government/local body directives related to store operations.” While there were a lot of instances of hoarding in the US and UK with a lot of essentials being sold out quickly, most of these platforms haven’t witnessed hoarding yet. BigBasket said, “We are not witnessing hoarding behavior thus far. To our customers, our stance will be not to panic and buy more than what they need. We will gear up for the increased demand and availability of products will not be an issue.” In a note on its website, Grofers asked its consumers to avoid hoarding. “Buy what you need and maybe add some cushioning on top as we will keep working hard to keep items in stock and reasonably priced for all our customers. Excessive buying or multiple orders to bypass inventory limit can lead to order cancellation,” its blog read. Grofers has disinfected its warehouses and is sanitising on a daily basis to keep the inventory virus free. Telling us more about the spike in their business and safety precautions, Albinder Dhindsa, Co-Founder &amp; CEO, Grofers, said, “Over the last couple of days, we have seen customers buying items on our platform in large quantities across cities as well as categories. Mumbai, Bangalore, Pune and Ahmedabad have seen a higher surge with nearly 80% growth followed by Delhi NCR and Hyderabad at a 60% spike in business. We have seen a rise in both the number of orders (45%) as well as order value (18%). Personal hygiene products, followed by floor cleaners have seen a surge in demand along with immunity-boosting products such as chyawanprash and honey. Essential items such as atta, dal and rice are also being bought in large quantities by our customers." Grofers has suspended travel between locations and offices, so each of its 20+ units across the country can stay isolated and clear of the virus. Its supplies are now passing through separate areas, manned by different personnel than those that work in crowds in store. The crates are also being washed and disinfected after every usage. However, a lot of delivery partners are hesitant to come to work. With higher demand and lack of resources, there is a delay in delivery. It is currently 3 days in Delhi and less than 2 days in most other cities. In such a scenario, it is advisable to plan your groceries in advance and avoid dealing in cash as it can be a possible source of transmitting the virus. A spokesperson from Big Basket said that they are working to expedite their product deliveries. “We will face some constraints for a few more days because it takes time to build capacity in terms of storage, delivery fleet and people. Our teams are working hard to streamline this and we will be back on track very soon.” Some platforms have been kind enough to provide essentials at a price lower than its usual market rate. For example, Grofers is selling N95 face masks at Rs 90, when the general market prices are in the range of Rs 450-500.

As malls shut down, online grocery stores in India see a surge in demand

It’s no secret that 2015 has been the year of <keyword id="6362513" type="ORGANIZATION" weightage="80" keywordseo="Startups">startups</keyword>. We’re all talking about that fact and accepting it. But, now that the year’s coming to an end, it’s time we take a moment to acknowledge the people behind these successful and efficient startups. 
 
Hence, we at Business Insider round up five <keyword id="53533" type="UNKNOWN" weightage="80" keywordseo="entrepreneurs">entrepreneurs</keyword> who we think have made a mark this year and who will ensure that 2016 remains an exciting year for <a href="http://www.businessinsider.in/searchresult.cms?query=startups">startups</a>- 
 
 
 
1. <keyword id="1670338" type="PERSON" weightage="80" keywordseo="Ritesh-Agarwal">Ritesh Agarwal</keyword>: <a href="http://www.businessinsider.in/searchresult.cms?query=ritesh+agarwal">Ritesh Agarwal</a>, CEO and founder of <a href="http://www.businessinsider.in/searchresult.cms?query=oyo">OYO Rooms</a>, India’s largest budget hotel chain which is present in more than 160 cities with 40,000 rooms under its umbrella is just 22 years old and a college drop-out. 
 
With the success of OYO Rooms, Agarwal has not only managed to change the entire hospitality game but also has rivals scurry to offer customers more budget options. And, to top it, Agarwal is also looking to acquire its rival ZO Rooms. We’re doubly excited to see how 2016 unravels for this young genius. 
 
 
 
2. Saurav Kumar: Four-year-old technology innovation firm <a href="http://www.businessinsider.in/searchresult.cms?query=cube26">Cube26 </a>was Saurav Kumar’s brainchild and is backed by Tiger Global and Flipkart amongst others. Kumar is known to bet big on innovations and Internet of Things and 2015 saw the release of its IOTA bulb which works via Bluetooth and can be synced with one’s phone. 
 
We’re expecting bigger things from Kumar next year! 
 
 
 
3. Varun Dua: <a href="http://www.businessinsider.in/Varun-Dua-CEO-and-co-founder-of-online-insurance-portalCoverfox-says-the-finance-startup-space-holds-humongous-potential/articleshow/50269160.cms">Varun Dua</a> is one of the rare entrepreneurs who’ve looked towards the financial startup space and ended up founding <keyword id="2821957" type="UNKNOWN" weightage="80" keywordseo="Coverfox">Coverfox</keyword>, an online insurance portal. The fact that the startup received over $14 million in funding is testimony to the fact that investors are sitting up and taking advantage of the humongous potential that the insurance space holds. For making insurance easier and taking it online, Dua makes it to our list! 
 
 
 
 
4. Albinder Dhindsa and Saurabh Kumar: From a shared work-space to raising $150 million recently, Albinder Dhindsa and Saurabh Kumar led<a href="http://www.businessinsider.in/searchresult.cms?query=grofers"> Grofers</a>' growth story in 2015 has been tremendous. The startup completely revolutionized the way grocery is shopped and currently the company fulfills over 30,000 orders a day with an average transaction size of Rs 350. 
 
 
 
5. Varun Aggarwal: Varun Aggarwal, along with Himsanshu Aggarwal found Aspiring Minds, an Indian employability evaluation and certification company to enable equal opportunity hiring of entry-level talent in the IT industry. They’re the company behind AMCAT and have found reasonable success in the placement business. For taking the route unknown and working towards solving the hiring crisis in the country, Aggarwal has our vote. 
 
Image credit: Indiatimes

BI Year Roundup: Five
entrepreneurs who made a mark for themselves in 2015

In a bid to make the process of ordering products easier, <keyword id="35621" type="UNKNOWN" weightage="100" keywordseo="e-commerce">e-commerce</keyword> mobile application <keyword id="2466939" type="UNKNOWN" weightage="100" keywordseo="Grofers">Grofers</keyword> has released a new version of its app on both Android and iOS platforms that will allow users to see on their phones the trending searches and categories selling in their neighborhood. 
 It simply means users can now discover the highest selling products (and categories like electronics, bakery etc) in their locality. More importantly, it will allow merchants and brands to study the demand and push special offers locality-wise accordingly which will play a crucial role in bolstering sales in the upcoming <keyword id="188" type="ENTERTAINMENT" weightage="100" keywordseo="Diwali">Diwali</keyword> season. 
 Notably, the categories of products in the <keyword id="3124758" type="UNKNOWN" weightage="100" keywordseo="Grofers-app">Grofers app</keyword> has been expanded from groceries, fresh fruits and vegetables to cosmetics, mobiles and accessories, bakery items and flowers. 
 
"With the latest app update (version 2.0), we bring a fresh experience that makes the process easier. Right on the home screen a user can discover the key merchants, trending products and product categories in their locality. Beyond that, adding products to your cart just takes a tap or two,” said Varun Khurana, Chief Technology Officer at Grofers. 
 
Another new feature showcases products from different brands at cheap rates to make sure the brand stores are available to a wider cross section of the users. Existing brand stores on the app include stores for Haldiram’s, Magnum Ice Cream, Wildcraft, Prestige among others. 
 
With this new version, Grofers has collaborated with all its payment partners - Citrus Wallet, MobiKwik and PayUmoney - in an effort to create smoother payment process. 
 Significantly, Grofers was one of the first e-commerce player to get the <keyword id="6354606" type="COMPANY" weightage="100" keywordseo="iPhone">iPhone</keyword> 6s into the hands of its consumers, by delivering it on the midnight of its launch on October 15. It was founded on December 26, 2013 by Saurabh Kumar and Albinder Dhindsa and is currently operational in 26 cities.

Now, you can see
products trending in your locality in Grofers latest app version

The Start up scenario in India is maturing everyday and innovative, new concepts are redefining the ecommerce business on a daily basis. While, ecommerce initially was all about shopping online, without wasting time going to a brick-mortar store, things have evolved pretty quickly since then. Well, for one, consumers aren’t willing to wait over 2-3 days to have their products delivered. 
 
And this has prompted a new kind of startup, which can deliver within a couple of hours of the order being placed. And with the rise of such companies like Grofers and Zopper, the veterans including Flipkart and Snapdeal are feeling uncomfortable , if not threatened. 
 
Grofers, focussed on groceries, is targeting an ambitious climb to 10 lakh orders in August, encouraged by weekend orders that crossed 15,000 a day in July, as per a news report by The Economic Times. "We will go up to 30,000 orders a day by August, definitely crossing 25,000. The challenge for us right now is to resolve operational issues like how to deliver in the rains," Albinder Dhindsa, cofounder and CEO of Grofers, which partners with neighborhood stores for delivery of goods has told ET. 
 
Other on-demand startups, too, are chasing ambitious goals in a country where people increasingly have less time for domestic chores and prefer being served. This, say investors, makes the nascent on-demand economy an ideal fix for the Indian psyche and the segment most likely to throw up the next few billion-dollar valuation startups. 
 
"The on-demand category hit an inflection point in India a few months ago and it will always trump scheduled orders because it is more convenient," Niren Shah, managing partner at Norwest Venture Partners, which has invested in food delivery startup Swiggy told the financial daily. 
 
Increasing use of affordable smartphones - and their ability to show precise locations - has made the ondemand business model more feasible and executable in the past year, say investors. 
 
"To build a large and highly valuable hyper-local business you need super-efficient logistics play that is better than what momand-pop stores have," Alok Goel, managing director at SAIFPartners, which has backed on-demand delivery companies like PepperTap, Swiggy and Spoonjoy told the financial daily. The rapid rise in demand has taken even some founders by surprise. 
 
Online-first restaurant Faasos, which makes and delivers food, handles around 4,500 orders a day through its mobile application and a total of 1.5 lakh a month. The company aims to increase this to 3 lakh monthly orders by September and 10 lakh by March, according to Revant Bhate, entrepreneur-in-residence at Faasos. 
 
Flipkart said it handles about 80 lakh shipments a month, an average of more than 2.6 lakh deliveries a day. The number of venture capital investments in on-demand startups has increased from 22 in all of 2014 to 55 till date this year. The capital deployed has more than doubled to $556 million, according to startup research firm Tracxn. 
 
The proliferation of the on-demand economy is likely to incentivise consumers still reluctant to transact on the internet, and open another channel that marketplaces such as Flipkart and Snapdeal will have to address, experts told the ET. 
 
"This will make etailers stand on their feet and execute at a faster pace, where they will also look to mimic the real offline shop experience where goods are delivered in 4 hours," said Goel, former CEO at mobile recharge and couponing firm Freecharge. 
 
Hyper-local startups such as Zopper are already creating marketplaces in segments like mobile and electronics by tying up with local stores.

Living in the fast lane! Start ups now delivering products within 2 hours

What started as a B2B company connecting mandis to stores is now also a B2C company connecting consumers with their local neighborhood merchants such as grocery shops, fruit and vegetable vendors, bakeries or pharmaceuticals via their apps on Android and IOS. Yes, it’s <a href="http://www.businessinsider.in/searchresult.cms?query=grofers">Grofers</a> we are talking about. While organizing the supply chain for local stores, they identified that the store-customer link was highly unorganized. Either the shop owners didn't answer the phone or they ran out of stock. Seeing that there was no player in the market addressing this pain point of customers, <keyword id="2466939" type="UNKNOWN" weightage="100" keywordseo="Grofers">Grofers</keyword> jumped in! 
 From 200 delivery boys and team of 25 in December last year, the company has come a long way in less than a year’s time with a plush office in Gurgaon, 4,000 delivery boys, over 5,000 merchants and 1000 plus team members. Clearly, it has in the last one year not only set up the link, but has gone aggressive in expansion (in tier 2 cities), building their team and crafting a well-knit merchant network, after raising several rounds of <keyword id="6357455" type="EVENT" weightage="100" keywordseo="Funding">funding</keyword> from investors including Tiger Global Management and Sequoia Capital among others that totals up to $46.5 million. "We are in talks with <a href="http://www.businessinsider.in/searchresult.cms?query=Softbank+">Softbank</a> for funding but nothing is finalized yet," Grofers founder <keyword id="331724" type="PERSON" weightage="100" keywordseo="Saurabh-Kumar">Saurabh Kumar</keyword> told Business Insider. 
 
Even as the company plans to expand operations to a few more cities, their focus remains on introducing new categories for customers (like electronics, cosmetics, stationary etc), fine-tuning back-end operations for ensuring availability of stocks at all stores in their listings, educating merchants on importance of 'dark stores' and enhancing customer experience. 
 
“We observed our supply side wasn’t scaling up the same way as we were,” Saurabh tells us. “Merchants give us inventory, we include it in our listings. Despite having 5,000 merchants, we do not have real time information about the products on their shelves. This leads to problems in fulfilling needs of customers in times of sudden rise in demand say over the weekends,” he says. 
 
The company is in efforts to rectify this problem by sharing data of purchasing pattern and educating merchants on the types and quantity of products they should keep in their shops. In addition, they are also encouraging the store owners to open what are called ‘dark stores’ where the stock Grofers will buy from them to deliver to customers will be stored. 
 
“It’s like a back door for us where no customer would walk in. It would be exclusively for us to keep a track of the products that have been supplied to a merchant and the real time status of their shelves so that it’s easier for us to manage and at no time, there is a crunch situation,” he says, adding that a lot of time, energy and technology is being put into use to realize this model. This will help each and every store listed with Grofers to be prepared with enough stock with them always to meet the demands of customers. 
 
The firm is so focused on building foolproof processes to ensure great customer service, it has no time or interest in investing in marketing the brand. “Look, celebrity faces help spike demand for a few days, that’s it, Ultimately if our services are good, our merchants get demand all the time, our customers are supplied quality products they ordered in 90 minutes, we do not need any marketing. Our services have to speak for us and that’s what we are working on,” says Saurabh. Ever since the company started the B2C business, their merchants and delivery boys have championed their brand on the ground. “Word of mouth has been key for us. As the buzz grew and our delivery boys were seen moving around, people started talking about Grofers,” he says. 
 
He doesn’t see e-commerce players like <a href="http://www.businessinsider.in/searchresult.cms?query=flipkart">Flipkart</a> and Amazon entering the fresh produce segment as a threat. In fact a lot of people starting transacting online with Grofers after becoming habitual to the concept of online buying procedures while using e-commerce websites. “We are happy because the more the buzz, the more people feel secure and comfortable in buying things online. They become habitual to it. Then give them a new option and you can see them wanting to explore options that they may have not in the past for example fresh fruits and vegetables,” says Saurabh. 
 
Also increasing competition doesn't seem to be bothering Saurabh and his partner Albinder Dhindsa because Grofers already owns the supply chain for fresh produce, an aim they set out with from the beginning. “It’s difficult to control quality of perishable items because each store would have different standards. We do it for the stores listed with us. Everything right from procurement of fresh produce from mandis to processing, cleaning and packaging is done by us. No human hand touches it after it has left our centers. We bring it to merchants and from their deliver to customers as per orders. We own the entire supply chain in fresh produce and we aim to do that for other categories too in future,” he says. 
 
This well established supply chain has also compelled FMCG companies to approach Grofers at times of launching new products or offers. “A lot of brands are coming onboard and doing product launches around <a href="http://www.businessinsider.in/searchresult.cms?query=Diwali+">Diwali</a> with us like Cadbury is launching exclusive hampers on our platform. If they go by their distribution model, it would take them lot of time to reach the customers, so seeing our hyper local connectivity, they come to us,” he says, adding that Grofers is trying to find ways of giving these brands better visibility. Aware of the fact that their supply chain model attracts MNCs, they intend on being able to manage the supply chain of these MNCs in the times to come. 
 
“For customers, Grofers wants to make life easy. You want anything from that local store round the corner, our merchants should have it in stock and you should be able to find it easily on our apps at any time. We want that you find it easier to turn to Grofers and order than going all the way to the store or using another platform. That’s requires good technology, established back-end processes, good quality supply of products, timely delivery and trust and we are working very hard on building all of that,” says the founder.

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