Kumar, who is known as SK inside the hyperlocal startup, will no longer be involved in day-to-day responsibilities of the Gurugram-based firm.
“He will continue to be a board member and a shareholder at the company. This is the end of an era for Grofers, and I know all of us will absolutely miss having him around everyday,” Dhindsa
said in a blog post. “I wish him the absolute best with his new mission and will be cheering for him with love and pride.”
I’ve known @skgrofers for 14 years and I’ve spent the last 8 years building @grofers with him. Today, SK is moving… https://t.co/V0tbLdPvZB
— Albinder Dhindsa (@albinder) 1624000317000
While Kumar’s next move is not clear as yet, Dhindsa said in the blog post that over the past six months, Kumar has been yearning to “invest in his own personal evolution—to grow beyond a growth driver to become a designer, enabler and coach. And diving deeper has convinced him that this is another area he can have a huge impact on, if he can build on it from scratch”.
“I haven’t known a life outside Grofers for the last 8 years. Most of my learning and growing up has happened here. In my mistakes, I have never felt alone. And every time we made a dent, we shared success the same. I am blessed to have had the opportunity to learn from and spend time with you. I am thankful for this” Kumar said in a letter to employees which was later reposted on Twitter.
Sent this letter to my team @Grofers. It has been an amazing 8 years building grofers with @albinder. Forever grate… https://t.co/WwUnSUfHUt
— Saurabh Kumar (@skgrofers) 1624000186000
Kumar’s exit from Grofers comes at a time when
IPO-bound Zomato is nearing a $100 million investment in the online grocery,
according to an ET report. The investment is likely part of a larger financing round and may value the online grocery firm at around $1 billion, sources had previously told ET. Kumar currently owns a 3.5% stake in the firm.
Grofers, which was looking to list on the tech-heavy Nasdaq in the US through a Cantor Fitzgerald blank-cheque firm, is also expected to scrap the IPO plan and continue to remain private, a person in the know had told ET last month.
The development also comes amid increased competition and a massive surge in demand on the back of the Covid-19 second wave. Last month, Tata Digital had announced a 64% stake purchase in grocery e-tailer BigBasket, in one of the largest M&A deals in India’s digital sector. Other large players in the space include Reliance JioMart, Amazon India and Walmart-owned Flipkart, all of whom have deep pockets and are ramping up their operations in the country.