India's Online Grocers Facing Gloomy Future, Analysts Believe

All existing online grocers in India do not have a viable business model, according to Future Retail Ltd. chief executive officer Kishore Biyani. Referring to the hyperlocal grocery delivery companies, which source their goods from local supermarkets and neighborhood stores, Biyani said these online retailers have high operating costs and incur huge losses. More than a dozen online food and grocery retailers are operating in the country. Five of these — Big Basket, Grofers, PepperTap, Jugnoo and ZopNow — have raised around $110 million in funding; however, the others are finding it hard to raise money. Most are likely to disappear in the near future; however, some are expected to survive the expected market consolidation, analysts say.