Online grocery firm Grofers, which has remodeled itself by switching to inventory from hyperlocal and launched B2B operations for additional revenue, has now around 8,500 merchants on board for the latter.
The company plans to have 40,000 merchants under its B2B services by March 2018, Prashant Verma, VP of marketing at Grofers stated. “Under the B2B model, we have tied up with selected merchants and become suppliers to them,” Verma added. He said that currently the B2B business is contributing gross merchandise value of Rs4 crore every month and the target is to achieve monthly GMV run rate of Rs 100 crore by March 2018.
The B2B leg of business caters to categories such as staples, FMCG and general merchandise and pushes its private label in staples to obtain offline presence at these stores. “We help them with our retail expertise in terms of stocking, buying pattern in the area, etc,” Verma said.
Currently, the B2B business contributes about 10% to the total business. The B2B services is operational across three cities — Delhi-NCR, Mumbai and Bengaluru and by end of current financial year it will expand to 7 more cities where it has its own warehouses — Chennai, Pune, Hyderabd, Kolkata, Pune, Jaipur and Lucknow. For B2C services, Grofers operates on inventory for its top 12 markets including Delhi-NCR, Mumbai, Bengaluru, and Kolkata.