BigBasket - Success Story of India's Largest Online Grocer

Chayanika Goswami Chayanika Goswami
Oct 4, 2021 12 min read
BigBasket - Success Story of India's Largest Online Grocer

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by BigBasket.

Today, BigBasket is the India's largest online grocer that receives over 100,000 orders per day. Online grocery shopping is fast gaining popularity among the Indians. According to a Redseer report, India's online grocery retail market is all set to touch $10.5 billion by 2023. A company that holds a huge share in this fast growing market is BigBasket. Founded in 2011, by dotcom bust survivors V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh and Abhinay Choudhari.  

With the recent deal, Tata Group becomes the owner of BigBasket by acquiring a majority stake of 64% in the company. BigBasket's valuation rockets to around $1.85 billion as of May 2021.

Read About BigBasket Company Profile, Story, Founders, Competitors, Business Model, Revenue, Funding, Acquisitions etc.,

BigBasket Company Details

Startup Name BigBasket
Headquarter Bangalore
Founders V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh & Abhinay Choudhari
Industry E-commerce
Founded October 2011
Revenue Rs 512.5K (FY20)
Total Funding $1.1 Billion
Valuation $2 Billion+
Parent Organization Tata Digital Limited

The Rise of BigBasket
About BigBasket
BigBasket - Founder /Owner/ CEO
BigBasket History - How BigBasket Started
BigBasket - User Acquisition
BigBasket - Revenue Model / Business Model
BigBasket - Startup Challenges
BigBasket - Competitors
BigBasket - Funding and Investors
BigBasket - Acquisitions
BigBasket - Growth / Revenue
BigBasket - Future Plans
BigBasket - FAQs

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BigBasket - Latest News

October 4, 2021 - BigBasket is working on BBNow, which will be launching as a quick commerce product of the brand, and will focus on quick grocery delivery.

August 7, 2021 - BigBasket co-founder, Abhinay Choudhari quietly exits the company on August 5, 2021, to continue with his entrepreneurial journey.

May 28, 2021 - Tata Sons has acquired a majority stake in BigBasket, putting the Indian conglomerate in a direct race with e-commerce players Amazon, Walmart, Flipkart and Reliance Industries. The stake was bought by Tata Digital Limited, a unit of Tata Sons. India's antitrust body had in March approved the acquisition of up to a 64.3% stake in BigBasket by Tata Digital.

The Rise of BigBasket

Big Basket Company Details
The Rise and Journey of Big Basket

About BigBasket

BigBasket is into delivering everyday cooking essentials like ghee (clarified butter), diced coconut and fragrant basmati rice and over 18,000 other items from bread to laundry detergent for their customers to shop from and get it delivered at their doorstep. Their target motive is to enable the ease of doing grocery shopping online to avoid traffic and the drudgery of supermarket runs.

To explore new opportunities, the company has also launched 3 new businesses BB Daily, BB Instant and BB Beauty.

BB Daily is a subscription based service that allows customers to order milk and fresh groceries. Customers has to place the order before 10 PM, and get the goods delivered with 5AM - 7AM the next day.

BB Instant is BigBasket's unmanned vending machines that are mostly available in corporate offices, tech parks, and apartment buildings in Tier I cities.

While BB Beauty, that allows the consumers to choose from a wide range of beauty and personal care products and order online.

BigBasket - Founder /Owner/ CEO

BigBasket was founded by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh and Abhinay Choudhari in 2011. Prior to BigBasket, the founders also founded, an online platform that sold books, toys, and groceries in the year 1999. Fabmart was sold to a grocery chain in 2006.

Founding team at BigBasket - Bigbasket owner
Big Basket - Founders

BigBasket CEO Hari Menon comes with a vast experience in diverse fields. Prior to Big Basket Mr Menon was the CEO of Indiaskills, the Vocational Education joint venture of Manipal Group with City & Guilds, UK. An alumni of BITS Pilani, Hari Menon also worked as the Country Head at Planetasia, one of India’s first Internet services businesses. Hari also held top positions with IT majors like Wipro Infotech.

BigBasket co-founder V S Sudhakar was the CEO of Planetasia. He has vast experience of working in the IT sector.

V.S. Ramesh is the Head of Logistics & Supply Chain at BigBasket. An Electronics Engineering graduate from Karnataka University, V.S. Ramesh has over 21 years of experience in the Indian Navy handling Operations and Logistics.

Vipul Parekh is the Head of Finance & Marketing at BigBasket. Vipul is an alumni of IIM Bangalore, and worked with Peepul Capital, a leading Private Equity Fund as an investment Director. He also worked  as business development head in the Wipro Infotech Group.

Abhinay Choudhari is the Head of New Initiatives at BigBasket. Abhinay is an IIM Ahmedabad alumnus. Besides working with leading IT companies like iGATE & Infosys, Abhinay also founded, one of India's first online fashion retail stores. had to be closed down as it did not turn out to be profitable.

Abhinay Choudhari takes a silent exit from BigBasket on August 5, 2021. Soon after Tata acquired BigBasket in May 2021, Abhinay decided not to continue working in the same firm, which he finally managed to do in August. As a parting note to his employees, Choudhari has mentioned that he left BigBasket because only to build another company from scratch due to "the start-up itch" that has been growing in him after nine years. Choudhari hinted to “solve another equally painful chore for many Indian households” in the form of the new business that he will found. Next, he will be looking forward to an online laundry business, as per reports.

BigBasket History - How BigBasket Started

All of this began when the BigBasket founders decided to exploit the experience they got post the massive failure of the dot com bubble. Hence, they decided to create a unique website that was never done before. All the founders of Big Basket had relevant and recent experience of the e-commerce when they had created was an online platform that sold books, toys, and groceries in the year 1999. Back then, only within a few months, they had realized that not just our country but the whole world was not ready to take this buzz of digitization. In the year 2006, Fabmart was merged with a brick and mortar grocery chain and the founders ended up selling their startup for a lump sum amount.

Then came the golden year of 2011, when the team reunited and started re-evaluating the idea of again coming up with something new and exciting. Despite all the criticism they had received back in 1999, they stood very strong on the fact that the time to do something that’d put them on the map was then. In 2011, the smartphone market was booming and anything and everything was available except groceries, of course. And that, right there was their Eureka moment.

BigBasket used to fulfil its orders by purchasing products from Metro cash and Carry stores, prior to setting up its first warehouse.

"We had people in the Metro stores, literally operating that as our warehouse" says Hari Menon, Co-founder & CEO of BigBasket.

BigBasket - User Acquisition

An interesting strategy that BigBasket follows to attract customers is that, the company keeps into account the varied needs and different shopping habits of its customers belonging to different cities. The amount of attention the founders paid to little details put them in a competitively better position.

The team did their planning city wise. They increased the leafy greens numbers in Mumbai, supplied a special kind of rice (called Sona Masoori) in Bangalore and went as far as providing eight different kinds of eggplants to picky customers. All in all, the company ensured their quality was nothing short of perfection.

Timely delivery is the essence of online shopping hence the team put a focused approach to this. They devised a model of customized software that automatically guides drivers to their destinations and helps the company achieve a near-perfect on-time rate. Late deliveries earn customers a 10 percent discount. Missing items are refunded on a cost that is 50 percent of whatever the item cost is.

BigBasket - Revenue Model / Business Model

BigBasket’s private label business is driven by lower prices and higher margins. Roughly 35% of the revenue comes from private labels. The aim here is to fill the gap in distinct categories like organic food, high-end consumer products, to name a few. Also, the company offers a lower price point for staples and fruits and vegetables. They also provides idli/dosa batter on their online platform which is very rare and does not have a lot of competition.

Moreover, on the B2B side, BigBasket serves its private-label to about a thousand Kirana stores, huge corporates, and HoReCa (hotels, restaurants, cafes). Regarding Big Basket's Business Model, Big Basket follows both 'inventory model' and hyper-local model.

Under the inventory model, the company buys products from leading suppliers like P&G, HUL, mills, farmers, etc., store the products in warehouses, and supplies the same to the customers on order. While in case of perishable goods, they have tie ups with local farmers and suppliers from whom they procure the goods as per order and supply the same to the customers.

Under the 'hyper-local model', BigBasket has tie-up with 2000+ grocery stores across India to deliver products within one hour from the neighborhood.

BigBasket is planning to launch its own quick commerce product named BBNow, which will be tentatively released by February 2022. The new qCommerce product will aim to deliver grocery products to the customers in 18-20 minutes within hyperlocal geography.

BBNow will be featured on Tata's upcoming superapp, TataNeu along with several other products of the brand including 1MG, Curefit, and more. The app is still in its development stage and though it will be designed to compete with Dunzo, Grofers, and Swiggy, being a rival in the same space,  it will be integrated into the BigBasket platform and not be a spin-off.

‘BBNow’ is estimated to stock up the best-selling essentials, which add to around 2,000 stock keeping units (SKUs). The app will utilize BigBasket’s existing dark stores network that is currently thriving across metropolitan cities, a source close to the company stated.

BigBasket - Startup Challenges

One of the main challenges of any startup in India primary includes getting customers to try the service first since the resistance level is much higher. This is followed by retaining these consumers despite all the other factors in the market like competitors, local vendors, and buying habits.

Also, since it was one of a kind startup dealing with groceries which was never the case before, it took a while for the consumers to place trust in a brand like that and start using their services.

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BigBasket - Competitors

Despite growing at an increasing rate, BigBasket faces cut-throat competition in the market. Major competitors are startups like LocalBanya, Sequoia backed PepperTap and SoftBank funded Grofers. Though these players are acquiring strong market standing with the time, the company tends to stand fit and fine win the market with its large and ever-increasing consumer base.

BigBasket - Funding and Investors

To date, BigBasket has raised a total of $1.1B in funding over 16 rounds. Their latest funding was raised on Apr 15, 2020 from a Debt Financing round.

Bigbasket has recorded gross sales worth $1.1 billion( INR 8000 crore) in financial yr 2021. It reports 80% growth from previous year and is expected to keep growing this way.

Recently, Commission of India approved Tata Digital's acquisition of BigBasket. Tata Group is believed to have acquired 64.3% stake in the grocery delivery unicorn BigBasket. The deal is estimated to be of $1.2 Billion, giving BigBasket a post-money valuation of over $2 Billion.

Here is the details of the funding raised by Big Basket till date -

Date Stage Amount Investors
March 2012 Series A $10 Million Ascent Capital
April 2014 Bridge Round $3 Million Singapore-based private investor
September 2014 Series B $33 Million Helion Venture Partners
August 2015 Series C $50 Million Bessemer Venture Partners
March 2016 Series D $150 Million Abraaj Group
March 2017 Debt Financing $6.9 Million Trifecta Capital Advisors
September 2017 Series E $280 Million Alibaba Group, Paytm Mall
October 1, 2017 Venture Round $5 Million Bessemer Venture Partners
October 10, 2017 Debt Financing $838.1K Trifecta Capital Advisors
October 25, 2017 Venture Round $4.3 Million Helion Ventures Partners
February 2018 Series E $300 Million Alibaba Group
January 2019 Venture Round - Growth Story
May 2019 Series F $150 Million Mirae Asset-Naver Asia Growth Fund
July 2019 Debt Financing $14 Million Trifecta Capital
April 9, 2020 Venture Round $60 Million Alibaba Group
April 15, 2020 Debt Financing $51.8 Million Alibaba Group

BigBasket - Acquisitions

Big Basket has made 5 acquisitions till date. Their most recent acquisition was hyper-local delivery platform - DailyNinja on Mar 24, 2020.

In June 2015, the company acquired 'Delyver' , an online platform that connects offline retailers with customers in a neighborhood. In October 2018, Big Basket acquired 'Raincan' a subscription based service provider for morning and breakfast essentials, headquartered in Pune.

In October 2018 itself, Big Basket also acquired 'KWIK24' a company that manufactures and designs smart vending machines. On October 19, 2018, Big Basket announced acquisition of Bangalore based startup 'Morning Cart' . Morning Cart is a daily essential ordering platform.

Here is the details of Acquisitions by BigBasket -

Acquired Date
Delyver June 12, 2015
Raincan October 18, 2018
KWIK24 October 19, 2018
Morning Cart October 19, 2018
DailyNinja March 24, 2020

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BigBasket - Growth / Revenue

BigBasket's expenses rose from Rs 3,365 crore in FY19 to Rs 4,411 crore in FY20. BigBasket has reported a 36% growth in revenue to Rs 3,818 crore for the year ended March 31, 2020

  • Aggressively present in over 26 cities of India
  • Serving to 125 million customers all around the country
  • Endorsed by the most celebrated celebrity of Bollywood - Shah Rukh Khan
  • Aims to double sales each year to hit $2 billion by 2021
  • Bigbasket has generated Rs 3,200 crore in revenue in FY19.
  • Partnered with the Chinese brand - Alibaba

BigBasket - Future Plans

BigBasket has strong plans of retaining its post as the largest grocery delivery platform in India. So the plan is to set up warehouses in all the 26 operating cities of India to bring down the delivery time to 3 hours.

By 2022, the plan is to grow to 60,000 SKUs and double the farmer base to 5,000. Further, the plan also includes expanding BigBasket’s private label range by using Alibaba’s muscle to source and import a range of merchandise to six times that of large-format supermarkets.

BigBasket - FAQs

Which is BigBasket origin country?

Big basket was originated in India.

Is BigBasket a Chinese company?

BigBasket is an Indian company but has Chinese investors like Alibaba Group and TR Capital. Online grocery retailer BigBasket has so far received greater than $250 million from Chinese companies. It recently received funding of close to $50 million from Alibaba.

Who is owner/founder of BigBasket?

BigBasket was founded by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh and Abhinay Choudhari.

Does BigBasket have offline stores?

No, it is a purely internet based company and do not have any brick and mortar stores.

What is bigbasket Wallet?

The bigbasket Wallet is a pre-paid credit account that is associated with your bigbasket account. This prepaid account allows you to pay a lump sum amount once to bigbasket and then shop multiple times without having to pay each time.

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