NEW DELHI: Owned by the Tata Group Big Basket aims for profitability in six to nine months, co-founder and chief marketing officer Vipul Parekh said.
“Our grocery delivery business is profitable today. Our daily business (BB Daily) is close to profitability. Our quick trade business (BB Now) is still some way from profitability, but we expect it to be profitable within six to nine months “The moment fast trading becomes profitable, six to nine months from now, we should be fully profitable (at the corporate level).” Parech told TOI in an interview on Monday.
The fast commerce or instant grocery delivery industry is essentially a low order value business and is difficult to scale.
“We are not a standalone quick commerce company. We also have daily milk activities and online slot deliveries. Because we use the same distribution centers and dark stores for all our companies, the order volume per dark store is high, which is a great advantage for us. The fixed costs per order decrease. Moreover, we have private labels that lead to better gross margins,” says Parekh.
Losses for BigBasket’s business-to-consumer (B2C) arm Innovative retail concepts rose from Rs 813 crore in FY22 to Rs 1,535 crore in FY23, according to the company’s filings with the RoC, sourced from business intelligence platform Tofler.
BigBasket is considering significantly expanding its offline presence. “We are trying to figure out what format is best for us to address the offline space,” Parekh said.
The company may be preparing for an IPO in 2025. “IPO will be a function of our profitability… I think 2025 is a good time to think about it for now,” Parekh said.
“Our grocery delivery business is profitable today. Our daily business (BB Daily) is close to profitability. Our quick trade business (BB Now) is still some way from profitability, but we expect it to be profitable within six to nine months “The moment fast trading becomes profitable, six to nine months from now, we should be fully profitable (at the corporate level).” Parech told TOI in an interview on Monday.
The fast commerce or instant grocery delivery industry is essentially a low order value business and is difficult to scale.
“We are not a standalone quick commerce company. We also have daily milk activities and online slot deliveries. Because we use the same distribution centers and dark stores for all our companies, the order volume per dark store is high, which is a great advantage for us. The fixed costs per order decrease. Moreover, we have private labels that lead to better gross margins,” says Parekh.
Losses for BigBasket’s business-to-consumer (B2C) arm Innovative retail concepts rose from Rs 813 crore in FY22 to Rs 1,535 crore in FY23, according to the company’s filings with the RoC, sourced from business intelligence platform Tofler.
BigBasket is considering significantly expanding its offline presence. “We are trying to figure out what format is best for us to address the offline space,” Parekh said.
The company may be preparing for an IPO in 2025. “IPO will be a function of our profitability… I think 2025 is a good time to think about it for now,” Parekh said.
