Kisanserv Aims for Rs 500 Cr Revenue Target with Strategic Retail Expansion in India
Kisanserv, a growing retail company specializing in fresh fruits and vegetables, has set an ambitious goal of reaching Rs 500 crore in revenue over the next four years. Established in 2019, Kisanserv has quickly made its mark in India’s traditional fruits and vegetables market by focusing on operational efficiency, direct partnerships with farmers, and an innovative hybrid retail model.
Kisanserv initially began by supplying to quick-commerce companies, which helped the company refine its supply chain operations. Building on this foundation, Kisanserv opened its first retail store in January 2023. Over the next 16 months, the company expanded to 22 stores across Pune and Mumbai, achieving profitability in each location without investing in marketing or social media. This organic growth has set the stage for a broader expansion to 250 stores, with a revenue target of Rs 500 crore within the next three years—a significant leap from its current Rs 35 crore revenue.
The expansion plan is expected to create 2,000 direct jobs and 4,000-5,000 indirect jobs, with a focus on hiring locally and prioritizing female staff. After this phase, Kisanserv plans to further 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.”
Kisanserv’s focus on quality, service, and operational excellence is already yielding strong results. The company currently generates Rs 41,000 per square foot annually, which is higher than the Rs 31,000 achieved by other leading grocery retailers. With the planned expansion, Kisanserv aims to increase this figure to Rs 65,000 per square foot per year.
The company's hybrid retail model has been well-received by urban customers. Kisanserv operates neighborhood convenience stores, each about 300 square feet, while also offering online shopping through the Kisanserv Express app. This model allows customers to shop in-store or order online, with home delivery within 20-30 minutes at no additional cost. Currently, 70 percent of Kisanserv’s revenue comes from in-store sales, with online transactions contributing 30 percent. This balance shows the company’s ability to cater to diverse consumer preferences, whether they prefer the traditional in-store 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 the Rs 160 billion fruits and vegetables market in India, where 90 percent is still dominated by local Kirana stores,” Sharma added.
A key differentiator for Kisanserv is its in-house technology, which enhances operational efficiency. The company has developed a custom ERP system that provides real-time visibility into demand, procurement, supply chain logistics, and product availability across all its stores. This technology has enabled Kisanserv to achieve an impressive inventory turnover of 1-2 days, ensuring product freshness and keeping wastage to a minimum—4-5 percent in stores and just 4 percent in the supply chain.
In a highly competitive market, Kisanserv distinguishes itself from traditional vendors and e-commerce companies with its unique value proposition. By sourcing directly from farms, Kisanserv ensures higher quality produce with less handling and longer shelf life. Despite offering superior quality, Kisanserv’s prices are 10-15 percent lower than those of local shops and 20-25 percent lower than online retail competitors. The stores also maintain strict hygiene standards, with nearly 100 percent of their produce sold in packed form, ensuring food safety.
Kisanserv’s commitment to sustainability is evident in its "Giving Back to Soil" initiative, where the company distributes compost to farmers, promoting the use of natural fertilizers and reducing the chemical load in produce. This initiative not only supports environmental sustainability but also strengthens Kisanserv’s relationships with farmers and local communities.
Looking ahead, Kisanserv is exploring the introduction of self-checkout systems in its stores to enhance the shopping experience. The company also plans to launch fresh cold-pressed fruit and vegetable juices, aligning with current consumer trends toward health and wellness.
Kisanserv’s journey from a bootstrapped startup to a company targeting Rs 500 crore in revenue is a story of innovation and dedication. As the company continues to grow, its focus on transparency, sustainability, and community engagement will remain central to its operations, ensuring that Kisanserv not only thrives as a business but also contributes to a healthier, more equitable food system in India.
