Amidst the pandemic, many households rely on e-grocery shopping for their monthly rations. While the big players in this space are doing well, some of the start-ups have also emerged to be great options for buying groceries. Grocery Factory (GF) is a startup based out of Bengaluru that provides homecare products straight to the consumers from manufacturers which cuts down the supply chain costs. The startup was founded in 2015 by Arjun Shetty and Karthik Shetty.
During the pandemic, Grocery Factory has joined hands with over 1 lakh non-Kirana stores. It schedules to expand its operations in Chennai and Hyderabad in the next 12-18 months. Grocery Factory has an assortment of products for sale from spices to dry fruits and vegetables.
View this post on Instagram
Bengaluru-based Grocery Factory delivers staples and homecare products directly from manufacturers to consumers under its own brand. . . The coronavirus pandemic is changing the way we shop, with grocery shoppers suddenly realising the convenience of shopping online and getting supplies in the comfort of their home . This is set to benefit the direct-to-consumer (D2C) services in the long term. Selling directly to consumers also gives brands better control over their supply chain and cuts down on middleman costs. #startupindia #startup #entrepreneur #startupnews #startupbusiness #india #business #indianstartups #entrepreneurship #indianentrepreneur #startups #digitalindia #startupstory #startupdelhi #businessindia #groceryBengaluru-based Grocery Factory delivers staples and homecare products directly from manufacturers to consumers under its own brand. . .
“GF is building India’s first D2C in groceries. We have created the most-efficient supply chain and last-mile delivery for the consumers. Customers pay almost 20-30 per cent less compared to any brand or competitors, and we still make money. We bring in our experience to give consistency every single time. We also built the direct selling model where customers can sell our products to their friends and family under the GF Partner,” says Karthik.
How it works
Grocery Factory delivers staples and home care products directly from manufacturers to consumers (M2C). The startup sells all the products, cultivated by manufacturers based on its formulations, under its brand. It is distributed directly to the consumers via its three-wheeler delivery vans. The van holds up QR codes of all the products available. Besides ordering on its mobile app, users can scan the codes to place new orders, which will be delivered in 24 hours.
The startup is nowadays working with 400 farmers and has been delivering to more than 25,000 customers in Bengaluru.
About the Business
KPMG and E&Y show that the size of the Indian grocery market prevails at $500 billion, and the retail industry in India is worth $1 trillion. The duo soon realised they need to focus more on the product than the technology, and since then, they have only focused on expanding the work. Grocery Factory currently competes with the likes of Bigbasket and Ninjacart.
The founders have invested over Rs 4 crore of their money in the startup and also raised an undisclosed seed round from angel investors, and are closing pre-series A round soon. It reported revenue of Rs 40 crore in FY 19-20 and expected to double its income in FY 20-21.
Future Plans The startup claims that it would proceed to build in metros and Tier-II cities as it speculates there is a high demand for such products across the country and will continue to add new customers. It aims to onboard one lakh non-Kirana stores as GF partners. By onboarding retail stores other than Kirana stores, the company can reach as many customers as possible with continuous availability of products across stores.