What is next for the Bangalore based e-grocer Bigbasket?
The company’s first goal is to generate ₹6300 crore in revenue this year.
The e-grocer also aims to utilize its cash for pushing new businesses like BB daily and instant.
The firm also wants to grow its user base which comprises of 12 million customers to 25 million by the end of this year.
The online grocery shopping sector in India has been booming in recent years. This sector is all set to touch the $5 billion mark by 2020. India’s food and grocery market is the 6th largest in the world. As globalization and urbanization have gripped India, more and more customers are turning to the internet for their daily grocery needs.
Bigbasket proudly claims that it is India’s largest online grocery store. This isn’t a small achievement since the e-grocer has faced stiff competition from the likes of the e-commerce giant Amazon which has years of experience to bank on and Softbank and Tiger global backed Grofers.
Started eight years ago by a team of five members in Bangalore, Bigbasket has raised capital of $1 billion so far. Recently it received investments of $150 million from Mirae investments, CDC group and Alibaba. This propelled the online grocery store into the elite club of unicorn start-ups. This funding came hot on the heels of another investment of $300 million just 18 months before. This capital was raised from international finance co-operation, Alibaba, Abraaj and Sands capital.
The e-grocer reportedly generated an astonishing revenue of ₹3200 crore in 2018. However, Bigbasket doesn’t have any plans of stopping anytime soon and has a lot of plans for its future in its kitty.
The company’s first goal is to generate ₹6300 crore in revenue this year. This is almost double of what the e-grocer generated last year. However, the company claims that it doesn’t have any pressure for an IPO nor are any of its investors exiting. It also plans on breaking even in all the 26 cities it operates in by the end of this year.
Also, its private label business is growing exponentially and contributes 35% to the revenue generated by the company. Lower prices and higher margins have been useful in the growth of this business. Bigbasket provides staples like fruits and vegetables at a much lower rate and also provides items like idli/dosa batter which doesn’t have a lot of competition in the market. The company also plans on bringing more kirana stores, corporates and hotels etc to provide service for through their private label.
The company has also launched its own beauty products service as a competition to the popular beauty brand Nykaa. The category features a vast host of beauty products that are usually not available in supermarkets. This business contributes to around 7% of the total revenue generated. Bigbasket aims to increase this to 10% by the end of this year.
The e-grocer also aims to utilize its cash for pushing new businesses like BB daily and instant. These new businesses are expected to contribute to over 20% of the total revenue to be generated by BB. The firm also wants to grow its user base which comprises of 12 million customers to 25 million by the end of this year. Hence the Bigbasket is going to amp up its marketing strategy.
Stay connected with us for latest updates!
- The impact of COVID-19 on the life of people who make the latest styled clothes - August 17, 2020
- Are Data Science, Data Analytics, Artificial Intelligence & Machine Learning running the engine of the Aarogya Setu app? - April 28, 2020
- Table Reservation Venture, EazyDiner raises $5.9 million in Series B funding round - April 24, 2020