Vipul Parekh, the co-founder and chief marketing officer of BigBasket, announced the company’s ambitious plans to achieve profitability within the next 6 to 9 months. The Tata Group-owned grocery giant is strategically focusing on various segments of its business to turn the tide in its favour.
Parekh revealed, “Our slotted grocery delivery business is already profitable, and our daily business, BB Daily, is on the brink of profitability. While our quick commerce business, BB Now, is currently a bit farther from profitability, we anticipate it will become profitable within the next six to nine months. Once our quick commerce business turns profitable, which we foresee happening within the aforementioned timeframe, the entire company should achieve profitability.”
The quick commerce sector, with its low order values, presents challenges in terms of profitability. However, BigBasket stands out by operating as an integrated entity that combines quick commerce, daily milk delivery, and online slotted deliveries. This integration allows them to utilize the same distribution centres and dark stores for all their operations, resulting in higher order volume per dark store and reduced fixed costs per order. Additionally, their private-label products contribute to healthier gross margins.
BigBasket’s financial filings with the Registrar of Companies (RoC), sourced from business intelligence platform Tofler, indicate that losses for its business-to-consumer (B2C) arm, Innovative Retail Concepts, rose from Rs 813 crore in FY22 to Rs 1,535 crore in FY23.
Looking ahead, BigBasket is also exploring opportunities to expand its offline presence significantly. Parekh mentioned, “We are currently evaluating the most suitable format for our offline presence.”
Furthermore, the company is contemplating an initial public offering (IPO) in 2025, with Parekh noting, “The decision to go public will depend on our profitability. Tentatively, we are considering 2025 as an opportune time to pursue an IPO.”
BigBasket’s aggressive approach to profitability and its potential IPO plans underscore its determination to strengthen its position in the highly competitive grocery and quick commerce markets.