Online grocery seller Grofers widened its losses further even though the company’s revenues went up by almost 136 per cent to Rs 339 million in 2016-17, indicating that the sector is still burning money towards discounts and delivery. According to the company’s filing with the Registrar of Companies sourced from business intelligence platform Paper.vc, the company’s losses grew 19 per cent over the previous year to Rs 2.6 billion.
The firm continued to burn cash as expenses in 2016-17 touched Rs 3.02 billion, a 26.2 per cent growth over the previous year. However, the good point is that losses were not proportionate to the growth in revenues, which means the company had to burn less extra cash to achieve additional growth.
According to the industry, the e-grocery segment is still at a nascent stage in India and players still have to rely on heavy discounting to rope in customers.