Categories: Business

Grofers to raise tech team pay by 33%, promises hefty ESOP allocation


Grofers on Monday said it will offer a 33 per cent hike in salary to its tech team effective July, along with a “hefty ESOP allocation” as the online grocery delivery platform looks to retain staff and woo more tech talent.

The SoftBank-backed company, which plans to launch an initial public offering (IPO), also hinted that it has secured a new funding round.

“After coming out of the second wave, and at a point where our next funding round is secure, I think it is time to kickstart a lot of initiatives that I have been waiting for the right time to begin. 

“We have done well so far, but we need to do better. And in hindsight, one of the most important things we could have done in the past in order to do way better is focus and invest more in tech than we have so far,” Grofers CEO Albinder Dhindsa said in a blogpost.

He added that tech will always be the “number one priority going forward”.

As per reports, Grofers is in talks for a USD 100-120 million fund raise.

Admitting that Grofers has been sub-par in terms of compensating its tech team, Dhindsa said this has resulted in the company not being able to attract the best talent.

“I also realise that we are sub-par in terms of compensating our tech team compared to other technology companies in the country. That has two repercussions — we are not able to attract the best of talent, and we fail to motivate our existing tech team…The entire tech team gets a no-ifs-and-buts 33 per cent increase in salary starting July,” he said.

He added that depending on the impact created by the employee over the last year, “there will also be a hefty ESOP (employee stock ownership) allocation” that will be communicated to them in the next few weeks.

“We will only succeed as an organisation if we invest heavily in tech. Our DNA needs to evolve to one of a tech company, and not an e-commerce company that utilises technology…Let’s start thinking of our team in two parts — ‘tech and ops’, and not ‘business and tech’,” he said.

Interestingly, Grofers co-founder Saurabh Kumar had last week announced that he has decided to leave the company. Kumar will continue to be a board member and shareholder in the company.

Grofers has seen strong growth in business amid the pandemic as containment measures introduced millions to the convenience of online shopping, and prompted seasoned online shoppers to buy more, including everyday grocery items.

Social distancing compulsions, massive smartphone base and reliable broadband have galvanised e-commerce uptake beyond metros, deep into smaller cities and towns.

Grofers competes against players like Amazon, Flipkart, BigBasket and billionaire Mukesh Ambani’s upstart JioMart in this space.

India’s USD 950 billion retail market is predicted to grow to USD 1.3 trillion by 2025-26. Of this, e-commerce business is estimated at around USD 78 billion and is projected to cross USD 100 billion by 2025. Grocery is the latest category where e-commerce firms are now slugging it out.

Subscribe to Mint Newsletters

* Enter a valid email

* Thank you for subscribing to our newsletter.

Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!



Source link

nand verma

Recent Posts

In unusual move, Calcutta HC files special leave petition | India News

KOLKATA: Litigants moving the Supreme Court is common, but not the Calcutta high court itself…

1 second ago

Coronavirus LIVE: Biocon joins Adagio for licence to make antibody cocktail

Bengaluru-based Biocon Biologics has partnered US-based Adagio Therapeutics for an exclusive licence to manufacture and…

10 mins ago

NREDCAP to set up ultra high speed charging points at IOC filling stations along highways, Auto News, ET Auto

The New & Renewable Energy Development Corporation of Andhra Pradesh (NREDCAP) is planning to sign…

48 mins ago

Floods in Europe and China disrupt global shipping, supply chains

The floods in China and Europe are yet "another body blow" for global supply chains,…

50 mins ago

Maharashtra: Flood toll 192, Konkan likely to get more rains in next 3 days | Mumbai News

MUMBAI: The death toll in the flood-hit regions of the state rose to 192 on…

55 mins ago