new delhi softbankbacked online grocery company grofers is aiming to generate 1 billion in revenues by the end of this financial year riding on the massive growth it is seeing in its online and recently started offline business said a top executive of the company the company has last year posted revenue of rs 2500 crore the online retailer which competes with bigbasket in the same space plans to convert 700 existing kirana stores into grofers branded stores in this financial year taking the total number of such stores to 1000we have been growing 2x every six months the category itself is growing massively monthonmonth given the pace we will become a billiondollar company by the end of this financial year said saurabh kumar founders of grofers we will also be converting 700 kirana stores to our branded store to take the total number of offline stores in delhincr to 1000 this year he said further advt grofers branded stores are 10002000 sqft neighborhood stores which grofers has converted with its own branding to expand its operations offline and to reach more consumers this also gives the company an opportunity to broaden its distribution and push own label products to earn better margins the kirana store owners in return get products at cheaper rates and data on consumer behavior in their locality from grofers which helps them to do higher volumes and profits by maintaining inventory in a much better way it depends from store to store but on an average within the first 3 months we have seen the volumes of these kirana stores going up by 30 percent and in some cases as high as 200 percent said the executivein the whole arrangement grofers manage backend sourcing inventory management and technology support on a revenuesharing modelaccording to kumar the company will look to enter bengaluru and mumbai in the offline space later this year grofers will not limit the number of kirana stores to onboard its platform in any neighborhood we want to bring all the kirana stores on our platform we do not want to put a cap on the numbers kumar saidwithin indias 500 billion grocery market just 02 is online but players are growing nearly 50 annually after using data penetration and adoption of webshopping in india to expand business in a category that until recently remained the monopoly of neighborhood stores online grocers grofers and rival bigbasket have an outsize share but amazon flipkart and swiggy are gradually mainstreaming the category advt grofers which generates around 40 percent of its revenues from its private label brands has seen good success in the offline channel too if kumar is to be believed more than 50 percent of the revenues from the offline stores are coming from the companys privatelabel brands which are generally priced up to 30 percent less currently the company has 1200 skus across different categories in its privatelabel brands which it plans to increase to 1500 by the end of