Innovative Retail Concepts, the retail arm of BigBasket, posted a nearly 44% year-on-year increase in revenue from operations at Rs 3,417.63 crore in the year to March 31, 2020, according to the company’s filings with the RoC sourced from business intelligence platform Tofler.
Total losses grew by about 22% to Rs 424.29 crore in FY20. The firm failed to keep a check on expenses that shot up by a little over 40% y-o-y to Rs 3,842.33 crore during the year. The company spent about Rs 2,729.63 crore in FY19.
Adoption of e-grocery grew manifold amid the pandemic as many households that typically subscribed to neighbourhood kirana stores moved online. There was an expected 1.5 to 1.6 times increase in households that signed up for online grocery in May 2020 compared to the beginning of the year, analysts at consulting firm RedSeer said.
Speaking at an event earlier this year, BigBasket’s co-founder & CEO Hari Menon had said that the firm’s business has doubled compared to the pre-Covid levels. “We are very clearly seeing the shift to online. We have acquired new customers by value three times, by number of orders three times and by number of members 2.6 times as compared to pre-Covid,” Menon had said at another summit last year.
Valued at $1.2 billion, the Bengaluru-based grocer is reportedly close to sealing a deal with the Tata Group that will give the conglomerate a majority stake in the company. As big 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 customers’ wallet.
RedSeer estimates the size (in terms of GMV) of the e-grocery market to jump manifold to $18.2 billion by 2024 from $1.9 billion in 2019.
Last week, Supermarket Grocery Supplies, the wholesale arm of BigBasket, posted a nearly 40% y-o-y increase in revenue from operations to Rs 3,790.04 crore in FY20. Total losses grew by 26.18% y-o-y to Rs 709.98 crore.
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