BigBasket was able to double its revenues from its wholesale arm in FY17 to Rs 1,176 crore compared to the Rs 563 registered in the previous fiscal year, according to documents from the Ministry of Corporate Affairs, reported by the Economic Times.
BigBasket generates revenues from two registered operating units. Through an entity called Supermarket Grocery Supplies, which is a business-to-business body that sources products and trades them to Innovative Retail, which operates their online portal.
While the Innovative Retail unit only generate Rs527 crore in FY16 they almost doubled their revenues to 1,090 crore in FY17. Both Supermarket Grocery Supplies and Innovative Retail generate almost the same amount of revenues
The firm is now eyeing an even steeper upward trajectory after raising $300 million in a round of investment led by Alibaba. Hari Menon optimistically stated last month that BigBasket is aiming at generating a monthly gross merchandise value run rate of Rs300 crore by August and take it further up to Rs500 crore coming March 2019. They are currently generating Rs200 crore of gross merchandise value run rate every month.
To boost their grocery platform even further, their new investor Alibaba will intergrade them in Paytm where the Chinese giant is also an investor.
BigBasket.com is the daughter company of Innovative Retail Concepts Private Limited and is currently India’s largest online food and grocery store. They are providing over 18,000 products from over 1,000 brands. They sell groceries ranging from fresh fruits and vegetables, rice and dals, spices and seasonings to package products, beverages, personal care products and even meats.
Buying groceries online is not yet a widespread trend in India and only 1% of the population is currently making use of this facility. However, this market segment is expected to grow at a rate of 55-60% and major online retail firms like Flipkart and Amazon are currently venturing into this market segment as well.