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Tata Capital > Blog > Loan for Business > How to Start a Grocery Delivery Business in India?

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How to Start a Grocery Delivery Business in India?

How to Start a Grocery Delivery Business in India?

With most businesses going digital, people have the convenience of purchasing practically anything online, including groceries. No wonder the grocery delivery business is a big success story in India, with both large and small players delivering groceries to the national and local populace alike. If you're also interested but unsure how to start a grocery delivery business in India, this guide will help you out.

1. Identify a target audience and location

This is the first thing you need to zero in on while starting your grocery delivery business. Most grocery items such as milk, pulses, rice, and others are perishable products and have a limited shelf life. Depending upon how fresh the items need to be delivered, you need to plan your delivery periphery accordingly. To identify your target audience location, start with monitoring the buying patterns and eating habits of those who stay in that particular zone.

That way, you will have a clear idea of the trends, thereby helping you keep a full inventory of items that may sell faster.

2. Have your backend in place

Once the target location and audience have been determined, the next step is to book a warehouse to store the products you wish to sell online. Choose the warehouse location strategically so you can deliver the products promptly. You can also create tie-ups with wholesalers and retailers so that you’re always well-supplied with the items you may need on a regular basis.

Additional Read: Grocery Delivery App: A Retailer’s Guide for Online Grocery Services

3. Get your business registered

Even if you’re planning to set up a grocery delivery business, it is crucial to have your business registered. As per the Company’s Act of 2013, your business should be registered as a proprietorship firm, partnership firm, public or private limited company, or a limited liability company with the Ministry of Corporate Affairs.

After the registration certificate comes procurement of Sales Tax and GST number. For this, you can take the help of a Chartered Accountant or a registered tax consultant.

4. Procure the proper funding

From the procurement of raw materials, inventory, setting up a delivery system, payment of workers’ salaries, and more, your online grocery delivery business will demand huge capital. Unless you have funds saved, you can get the required money using a business loan. Just make sure to compare between lenders, check your lender’s eligibility requirements, and apply.

5. Have your marketing game in check

Your business won't take off if people don't know about it. This is where marketing comes to your rescue. Have a solid and strategic marketing plan in place to spread the word out. This could include distributing pamphlets, running social media campaigns with the help of a digital marketing agency, sending out bulk SMS, or advertising in local newspapers.

Additional Read: Step-by-Step Guide for Starting a Food Delivery Business in India

Over to you

Need funds for launching your grocery business? We can help! Tata Capital offers loans of up to Rs. 75 lakhs with business loan interest rates starting at just 19%. Our loan processing is digital, quick, and only requires minimal documentation. You can also use our business loan EMI calculator online and estimate your projected EMIs in advance.

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