BigBasket is India’s biggest online store for grocery shopping. It was founded by V.S. Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari and V.S. Ramesh in 2011. The central office is located in Bangalore.
BigBasket online grocery currently operates from Banglore, Mumbai, and Hyderabad and provides their services in 22 different cities in India. With more than 18000 grocery products and 1000 brands featuring on BigBasket.
Their product categories consist of Fresh Fruits and Vegetables, Grocery and Staples, Bread Dairy and Eggs, Beverages, Branded Foods, Personal Care, Households etc.
History of BigBasket Online Grocery
It was the year 1999 when Hari Menon along with his friends—V.S. Sudhakar, Vipul Parekh, Abhinay Choudhari and V.S. Ramesh launched their online retail website called ‘Fabmart’. Initially, they managed to get some footing; however, social media and shoppable social media were still not commonly present in that period; this made their idea way ahead of its time and thus, they could not change the mindset of masses.
They decided to start their online business again and focused all the energies on ‘Fabmall’, their physical retail chain of grocery stores. They also merged this chain with another grocery retail chain called ‘Trinethra’.
Within a period of seven years, they expanded their business to 200 stores across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. At that point of time they decided to sell their business to Aditya Birla Group but Krishnan Ganesh, an entrepreneur, concluded to go ahead with it. And finally in December 2011, they launched BigBasket.com.
Funding of BigBasket Online Grocery
They received their first funding of $10million from ChrysCapital co-founder Raj Kondur and Ascent Capital.
After that, there were 15+ funding rounds of more than $100 million in the whole year of 2014. By next couple of years, BigBasket highest fund raising was 150 million dollars in March 2016 led by Abraaj Capital in its Series D of funding. Some of the other investors are Bessemer Ventures, Helion, Zodius and existing investors who participated including Ascent Capital, Lion Rock Capital and Ganesh Krishnan and Meena Ganesh.
It has got the unicorn status in 2019. BigBasket has raised a total of $1.1B in funding over 17 rounds. Their latest funding was raised on Apr 15, 2020 from a Debt Financing round.
Here is the details of the funding raised by BigBasket till the year 2020:
|March 2012||Series A||$10 Million||Ascent Capital|
|April 2014||Bridge Round||$3 Million||Singapore-based private investor|
|September 2014||Series B||$33 Million||Helion Venture Partners|
|August 2015||Series C||$50 Million||Bessemer Venture Partners|
|March 2016||Series D||$150 Million||Abraaj Group|
|March 2017||Debt Financing||$6.9 Million||Trifecta Capital Advisors|
|September 2017||Series E||$280 Million||Alibaba Group, Paytm Mall|
|October 1, 2017||Venture Round||$5 Million||Bessemer Venture Partners|
|October 10, 2017||Debt Financing||$838.1K||Trifecta Capital Advisors|
|October 25, 2017||Venture Round||$4.3 Million||Helion Ventures Partners|
|February 2018||Series E||$300 Million||Alibaba Group|
|January 2019||Venture Round||–||Growth Story|
|May 2019||Series F||$150 Million||Mirae Asset-Naver Asia Growth Fund|
|July 2019||Debt Financing||$14 Million||Trifecta Capital|
|April 9, 2020||Venture Round||$60 Million||Alibaba Group|
|April 15, 2020||Debt Financing||$51.8 Million||Alibaba Group|
Competition of BigBasket Online Grocery
The online grocery market has grown big time in India since it was born. With new players adding up to the market and many of the big offline supermarket going online, everyone is keeping up their game to retain the existing customers and to attract new ones.
Despite growing at an increasing rate, BigBasket faces cut-throat competition in the market. Major competitors are startups like LocalBanya, Sequoia backed PepperTap and SoftBank funded Grofers. Though these players are acquiring strong market standing with the time, the company tends to stand fit and fine win the market with its large and ever-increasing consumer base.
Acquisitions of BigBasket Online Grocery
By the year 2020, BigBasket online grocery has made 5 acquisitions. Their most recent acquisition was hyper-local delivery platform — DailyNinja on Mar 24, 2020.
In the year 2018, BigBasket completed three acquisitions. In October 2018, BigBasket acquired ‘Raincan’ a subscription based service provider for morning and breakfast essentials, headquartered in Pune.
In October 2018 itself, BigBasket also acquired ‘KWIK24’ a company that manufactures and designs smart vending machines. On October 19, 2018, BigBasket announced acquisition of Bangalore based startup ‘Morning Cart’ which is a daily essential ordering platform.
In June 2015, the company acquired ‘Delyver’, an online platform that connects offline retailers with customers in a neighborhood.
Business Model of BigBasket
When BigBasket started its operations, it adopted a ‘purchased-to-order’ mode, wherein, the delivery boy directly picks up the item from the retailer and directly delivers it to the customer. Later, they adopted an ‘inventory model’ for most of their products, and BigBasket now buys products directly from suppliers and keeps stocks in their warehouses. BigBasket sources many perishable food products like fruits and vegetables from the mandis and other places.
To serve the hyper-local sentiment of the people, BigBasket online grocery has been implementing hyper-local strategies and has joined hands with more than 1,800 neighborhood grocery stores across India to deliver goods within an hour.
Growth / Revenue
- Aggressively present in over 26 cities of India
- Serving to 125 million customers all around the country
- Aims to double sales each year to hit $2 billion by 2021
- Bigbasket has generated Rs 3,200 crore in revenue in FY19.
- Partnered with the Chinese brand – Alibaba
BigBasket’s plan is to grow to 60,000 SKUs (Stock Keeping Units) and double the farmer base to 5,000 by 2022. Further, the plan also includes expanding BigBasket’s private label range by using Alibaba’s muscle to source and import a range of merchandise to six times that of large-format supermarkets.
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