Grofers gets Green Signal From DIPP to open ‘Food Only’ Outlets

Online food delivery startup Grofers have received a nod from the government in order to open both online and offline food retail trading in the country. With this initiative, the startup is also planning to expand its market by adding $40 Million within next few weeks.

Grofers was the first company to seek in August last year approval under the new policy notified by the Department of Industrial Policy and Promotion (DIPP). However, Amazon was the first e-commerce company to get an approval for setting up food retail stores in the country earlier last month.

Commenting on the development, Albinder Dhindsa, founder of Grofers said, “We would like to thank the Ministry of Food Processing, Ministry of Finance, and DIPP for granting this approval to Grofers. This will go a long way in promoting the grocery retail business in India and for Grofers to provide the best retail experience to its customers across online and offline channels.”

In June last year, the government had allowed 100 per cent FDI in multi-brand food retail. However, food products have to be produced, processed or manufactured in the country. The move till now had drawn little interest from international retail players who have complained that just having “food-only” stores was not a viable option.

Ashneer Grover, CFO, Grofers, said that the approval will allow the company to carry its own inventory and exercise better control over its supply chain. “Between GST and this approval, we foresee costs and compliances being rationalized significantly, thereby permitting us to invest more in improving back-end infrastructure and our value proposition.

Grofers was founded in 2013 by IIT graduates Albinder Dhindsa and Saurabh Kumar. Grofers is a delivery startup that offers products across categories like grocery, fruits & vegetables, beauty & wellness, household care, baby care, pet care, bakery and meats & seafood. The company has raised close to $165.5 Mn funding till date. Read more about Indian Startup Ecosystem.

Grofers gets Green Signal From DIPP to open ‘Food Only’ Outlets
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