Flipkart Grocery records 1.6X y-o-y growth; scales up operations in metros

The e-commerce firm reports notable surge in premium categories such as liquid detergents by 1.8times, dry fruits by 1.5times, and energy drinks by 1.5 times

Walmart-owned Flipkart has reported 1.6 times year-on-year (Y-o-Y) growth in its grocery business during the financial year 2024, when compared to the previous year.

Launched in 2017, Flipkart Grocery now claims that it is the only e-commerce company that offers next-day delivery in over 200 cities.

The firm is expanding rapidly amid increasing competition in the sector, where it is rubbing shoulders with players like Amazon, Reliance’s JioMart, Tata Digital-owned BigBasket as well as quick commerce platforms like Swiggy Instamart, Zepto and Zomato-owned Blinkit.

Hari Kumar G, Vice President, Head of Grocery, Flipkart, said, “Flipkart’s growth in the grocery category reflects our unwavering commitment to building innovation and customer-centricity for emerging categories while offering the right value to consumers for their everyday grocery needs.”

Overall, the grocery and food retail market is the largest segment of the Indian retail sector, valued at $570 billion in 2021, according to analysts. This is forecast to rise to $850 billion by 2025

The company said that Flipkart Grocery is now in over 200 cities.

These include metros such as Bengaluru, Chennai, Kolkata, Mumbai, New Delhi, and T2+ towns like Anantapur, Berhampore, Gorakhpur, Moradabad, Nagaon, Saharsa, Shimoga and Vellore. With a wide array of products being offered at a starting price range of ~5, consumers from these cities have shown strong inclination towards affordability, the firm said.

In terms of high-performing categories, Flipkart has witnessed a 1.6 times growth in essential staples such as oil, ghee, atta and FMCG favourites such as tea, coffee, beverages and detergents. 

Flipkart has also recorded strong growth across essential and non-essential items, with a notable surge in premium categories such as liquid detergents by 1.8times, dry fruits by 1.5times, and energy drinks by 1.5 times.

“We stay focused on making e-grocery accessible to all customers nationwide. With a dynamic team and a customer-first approach, we are poised to revolutionize how India shops for groceries online,” Kumar said.

In an effort to cater to the rising demand for daily essentials, Flipkart has strengthened its grocery supply chain infrastructure across the country with the launch and expansion of 11 grocery fulfilment centres across key locations such as Ahmedabad, Bhubaneswar, Chennai, Hubli, Hyderabad, Kolkata, Ludhiana, Malda, Patna, Sonipat in Delhi NCR and Visakhapatnam.

With the combined size of over 12.14 lakhs square feet, and a capacity of close to 20.9 lakhs units, these fulfillment centres serve 1.6 lakhs grocery orders per day across these regions.

Building a resilient supply chain network is one of the key pillars of Flipkart’s growth strategy and helps bring the ease of online grocery shopping to more customers in the country.

Technological innovations:

Powered by home-grown technology, Flipkart has optimised its operations to efficiently cater to the surge in online grocery demand. Voice-enabled shopping, zero-interest credit, and open-box delivery, among other features, have been key pillars in furthering Flipkart’s commitment to enhancing its customers' shopping experience, the firm said.

The company’s in-house tech teams leverage data insights to offer better prices, locate customer hubs for proximity, and ensure real-time monitoring of deliveries.

In line with its commitment to sustainability, Flipkart has made significant strides in environmental responsibility. At present, over 50 per cent of grocery deliveries are covered on EVs, with Flipkart marking a Y-o-Y increment of 140 per cent.

Among other initiatives towards achieving its sustainability goals, Flipkart delivers groceries to consumers in reusable totes and uses eco-friendly cardboard shreds to protect any delicate items. This helps in optimising packaging by reducing waste in its supply chain and minimising overall environmental impact.