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Kisanserv’s 250-store expansion to create 6,000 jobs
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Monday, 26 August, 2024, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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Kisanserv, a rapidly growing bootstrapped retail company specialising in fresh fruits and vegetables, is ambitiously targeting a revenue milestone of Rs 500 crore within the next four years. Established in 2019, it has quickly carved out a niche in India’s traditional fruits and vegetables market by combining operational efficiency, direct farmer partnerships, and an innovative hybrid retail model.
Its journey began by catering to quick-commerce companies, which provided a platform to test and refine its supply chain processes. With a solid foundation in place, it opened its first retail store in January 2023. In just 16 months, the company expanded to 22 stores across Pune and Mumbai, achieving profitability in each location without investing in marketing or social media promotion. This organic growth has set the stage for an ambitious expansion to 250 stores, with a revenue target of Rs 500 crore over the next three years—a significant leap from the current Rs 35 crore revenue reported for the most recent fiscal year.
As the company expands to 250 stores, it expects to create 2,000 direct jobs and 4,000-5,000 indirect jobs, focusing on hiring from local communities and prioritising female staff. Following this initial phase of expansion, the company plans to scale up to 1,000 stores, entering new markets such as Bangalore, Hyderabad, and Chennai.
Niranjan Sharma, CEO of Kisanserv, said, “Our success so far is a testament to our commitment to transparency, sustainability, and customer satisfaction. By eliminating middlemen, we’ve been able to offer fresher produce at significantly lower prices while ensuring that farmers receive more than double their traditional earnings. This approach not only empowers farmers but also delivers exceptional value to our customers.”
Its strategy of focusing on quality, service, and operational excellence is already yielding results. The company currently generates Rs 41,000 per square foot per year—significantly higher than the Rs 31,000 achieved by other top grocery retailers. With the planned expansion, the company aims to increase this figure to Rs 65,000 per square foot per year.
Its hybrid retail model has resonated strongly with urban customers. The company operates neighbourhood convenience stores, each approximately 300 square feet, while also offering a robust online shopping experience through the express app. This model allows customers to shop in-store or order online, with home delivery promised within 20-30 minutes at no additional cost. Currently, 70% of its revenue comes from in-store sales, with online transactions contributing 30%. This balance reflects the company’s ability to cater to diverse consumer preferences, whether they prefer the traditional “touch, feel, and buy” experience or the convenience of online shopping.
“We’ve nearly perfected our business model, and now we’re ready to scale rapidly. Our focus on operational efficiency, combined with our commitment to quality and customer service, positions us to capture a significant share of Rs 160 billion fruits and vegetables market in India, where 90% is still dominated by local Kirana stores,” said Sharma.
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