Founded in 2011, the firm turned unicorn earlier this year with a $150-million in funding from Mirae Asset, CDC Group and existing backer Alibaba.
BigBasket’s retail unit, Innovative Retail Concepts’ losses widened by 94.31% year-on-year to Rs 348.27 crore in the year to March 2019. Revenue from operations, however, grew 69% y-o-y to Rs 2,380.95 crore during the period, according to the company’s RoC filings sourced from business intelligence platform Tofler.
Total expenses of the Bengaluru-based online grocer shot up to Rs 2,729.63 crore in FY19 compared to Rs 1,589.40 crore in FY18, higher by 71.73%, the data showed. The company had posted a loss of Rs 179.23 crore in 2017-18 financial year.
In recent interviews with local media, co-founder and CEO Hari Menon said the company is currently focusing on attaining profitability. Menon hopes BigBasket to break even at operational level in top 10 metro cities in the current financial year.
Founded in 2011, the firm turned unicorn earlier this year with a $150-million in funding from Mirae Asset, CDC Group and existing backer Alibaba. The investment valued the firm at close to $2.3 billion, according to analysts. BigBasket has so far raised close to $1 billion in funding, according to data from Crunchbase.
BigBasket that follows an inventory-led model sells various items ranging from perishables to packaged foods and also forayed into the beauty segment. The company currently delivers in 26 cities but bulk of its revenue is generated from the top 10 cities.
India’s online grocery market is led by BigBasket and Gurgaon-based Grofers. Grofers, which was earlier a pure hyperlocal, shifted to becoming an online grocer with an inventory-led model. In May, the firm said it is raising $200 million led by SoftBank Vision Fund (SVF).
Given that online grocery segment is still under penetrated, companies have opportunity to scale up, analysts said.
Menon had earlier this year said BigBasket holds around 50% of the online grocery segment which is pegged at about $1.20 billion, according to media reports. The firm is understood to have merged its on-demand 90-minute delivery service and planned next-day order service to deliver expanded choice of items to customers in a lesser time.
However, BigBasket may have to gear up for tough competition as Walmart-controlled Flipkart is set to enter the space. It has registered a new entity, Flipkart FarmerMart to undertake retail trading of food products in the country. Flipkart’s war-chest coupled with Walmart’s expertise in supply chain management and logistics could help it build on the business quickly, analysts said.