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BigBasket’s wholesale unit posts 40% rise in revenues in FY20, losses up 26%

According to the company’s website, Supermarket Grocery Supplies owns BigBasket business, the vertical that caters to the needs of kirana stores, pharmacies, hotels, restaurants, caterers and institutions.

Total losses, however, grew by 26.18% y-o-y to Rs 709.98 crore in FY20.
Total losses, however, grew by 26.18% y-o-y to Rs 709.98 crore in FY20.
Supermarket Grocery Supplies, the wholesale arm of BigBasket, posted a nearly 40% year-on-year increase in revenue from operations at Rs 3,790.04 crore in the year ended March 31, 2020, according to the company’s filings with the RoC sourced from business intelligence platform Tofler.

Total losses, however, grew by 26.18% y-o-y to Rs 709.98 crore in FY20. The firm failed to keep a check on overall expenses, which shot up by over 30% y-o-y to Rs 4,411.39 crore during the year. The company had spent about Rs 3,365.28 crore in FY19.

According to the company’s website, Supermarket Grocery Supplies owns BigBasket business, the vertical that caters to the needs of kirana stores, pharmacies, hotels, restaurants, caterers and institutions.

Analysts expect the B2B piece of e-commerce to see a lot of action in 2021. India’s retail market is largely unorganised and the larger players will look to leverage the 12 million kiranas to grow their presence. Competition in the space is deepening with the entry of big players. JioMart is already fulfilling orders placed by kiranas by sourcing products from their distribution centres and network of stores. Earlier this week, Flipkart Wholesale announced its expansion into the grocery segment.

“The B2B e-commerce space will be a lot more in focus next year with many of the mom-and–pop stores being transformed as the larger marketplaces work to upgrade them,” Harsha Razdan, partner at KPMG India had said earlier.

Valued at $1.2 billion, BigBasket is reportedly close to sealing a deal with the Tata group, which will give the conglomerate a majority stake in the company. As deep-pocketed players like Flipkart and Amazon sharpen their focus on grocery, intensifying competition in the space, the backing of the Tatas is expected to give BigBasket a leg-up in the fight to capture a larger share of the market.

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