BigBasket Success Story

Big Basket is an Indian online grocery delivery platform that has achieved significant success in the e-commerce industry. The company was founded in 2011 by Hari Menon, Vipul Parekh, V.S. Sudhakar, V.S. Ramesh, and Abhinay Choudhari. Here is an overview of Big Basket’s success story:

1. Early Beginnings: Big Basket started its operations in Bengaluru, India, with a vision to revolutionize the way people shop for groceries. It aimed to provide a convenient and hassle-free online grocery shopping experience.
2. Expanding Reach: Over the years, Big Basket expanded its operations to other major cities in India, including Mumbai, Delhi, Chennai, Hyderabad, Pune, and Kolkata. This enabled the company to cater to a broader customer base and tap into the growing demand for online grocery shopping.
3. Robust Supply Chain: Big Basket developed a robust supply chain infrastructure, including warehousing and cold storage facilities, to ensure the availability of a wide range of quality products. This helped in maintaining freshness and timely delivery of groceries to customers.
4. Wide Product Range: Big Basket offers a comprehensive range of products, including fresh fruits and vegetables, dairy products, household essentials, personal care items, gourmet foods, and more. The extensive product selection caters to diverse customer needs and preferences.
5. Focus on Quality and Reliability: Big Basket prioritizes the quality of products and ensures that they meet stringent standards. The company works closely with farmers, producers, and suppliers to source fresh and high-quality items. Additionally, Big Basket has built a reputation for reliable and on-time delivery, enhancing customer satisfaction.
6. Technology and Innovation: Big Basket leverages technology and innovation to enhance the customer experience. The company’s user-friendly website and mobile app allow customers to easily browse and order groceries. It also employs advanced logistics and data analytics to optimize delivery routes and improve operational efficiency.
7. Customer-Centric Approach: Big Basket places a strong emphasis on customer satisfaction. It offers convenient delivery options, including express delivery and time slots, to cater to customers’ preferences. The company also provides responsive customer support to address any queries or concerns.
8. Funding and Strategic Partnerships: Big Basket has secured significant funding from prominent investors, including Alibaba Group, Mirae Asset-Naver Asia Growth Fund, and the CDC Group. These investments have supported the company’s expansion plans and helped strengthen its position in the market.
9. Market Leadership: Big Basket has emerged as one of the market leaders in the online grocery segment in India. Its success can be attributed to its customer-centric approach, wide product range, reliable service, and efficient operations.
10. Continued Growth: Big Basket continues to grow and adapt to changing market dynamics. It explores innovative initiatives, such as partnerships with local kirana stores, to expand its reach and cater to a larger customer base. The company aims to further consolidate its position as a trusted online grocery platform in India.

Overall, Big Basket’s success story can be attributed to its commitment to quality, reliability, customer satisfaction, and continuous innovation in the online grocery space.

BigBasket Company Details

Startup Name	BigBasket
Headquarter	Bangalore
Founders	V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh & Abhinay Choudhari
Industry	E-commerce, Grocery, Grocery Delivery
Founded	October 2011
Operating Revenue	$1.57 bn (Rs 12,595 crore in FY22)
Total Funding	$1.3 Billion (June 2022)
Valuation	$2 Billion+
Parent Organization	Tata Digital Limited
Website	bigbasket.com

Table of Contents

BigBasket – About
BigBasket – Founders and Team
BigBasket – Startup Story | How BigBasket Started?
BigBasket – Name, Tagline and Logo
BigBasket – Business and Revenue Model
BigBasket – Startup Challenges
BigBasket – Competitors
BigBasket – Funding and Investors
BigBasket – Acquisitions
BigBasket – Growth and Revenue
BigBasket – Awards and Recognitions
BigBasket – Partnerships
BigBasket – Future Plans

BigBasket – About

BigBasket specializes in delivering a wide range of everyday cooking essentials such as ghee, diced coconut, fragrant basmati rice, and more, totaling over 40,000 items. Additionally, they offer various household products ranging from bread to laundry detergents, all conveniently delivered to customers’ doorsteps. The company’s primary goal is to provide a hassle-free online grocery shopping experience, eliminating the need to deal with traffic and the tedium of visiting supermarkets.

To explore new opportunities and cater to different customer needs, BigBasket has expanded its services by launching three additional businesses: BB Daily, BB Instant, and BB Beauty.

BB Daily is a subscription-based service that enables customers to order fresh milk and groceries. Orders need to be placed before 10 PM, and the goods are delivered between 5 AM and 7 AM the next day.

BB Instant introduces unmanned vending machines primarily located in corporate offices, tech parks, and apartment buildings in Tier I cities, providing quick access to essential products.

BB Beauty offers a diverse selection of beauty and personal care products that customers can conveniently order online.

BigBasket has also introduced Fresho stores, marking its first venture into offline retail. The inaugural Fresho store is located in Basaveshwar Nagar, Bangalore. These stores are equipped with technology-driven self-service features, allowing customers to enjoy a unique shopping experience.

Please note that the information provided is based on the knowledge available up to September 2021, and there may have been updates or changes since then.

BigBasket – Founders and Team

BigBasket was founded in 2011 by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, and Abhinay Choudhari. The founders had previously established Fabmart.com, an online platform selling books, toys, and groceries in 1999, which was later sold to a grocery chain in 2006.

The founding team at BigBasket includes:

1. V.S. Sudhakar: Co-founder and CEO of Planetasia, bringing extensive experience in the IT sector.

2. Hari Menon: CEO of BigBasket with a diverse background. He was previously the CEO of Indiaskills and held positions at Wipro Infotech and Planetasia.

3. V.S. Ramesh: Head of Logistics & Supply Chain, an Electronics Engineering graduate with over 21 years of experience in the Indian Navy and co-founder of Fabmall.

4. Vipul Parekh: Head of Finance & Marketing, an alumnus of IIM Bangalore. He held key leadership positions at companies like Wipro Limited, Trinethra Super Retail Ltd., and Peepul Capital Advisors Pvt Ltd. Parekh also co-founded Fabmall.

5. Abhinay Choudhari: Co-founder and former Head of New Initiatives, an IIM Ahmedabad alumnus. He previously worked with iGATE, Infosys, and founded Stylecountry.com. Choudhari left BigBasket in August 2021 to start a new venture, possibly an online laundry business.

BigBasket’s team also included TN Hari, the Chief Human Resources Officer (CHRO), who decided to pursue new endeavors after spending 20 years in the Indian startup ecosystem. Hari plans to establish the Artha School of Entrepreneurship to support entrepreneurs in scaling their ventures.

RainCan, a daily essential subscription-based startup, was acquired by BigBasket in 2018 and rebranded as BBDaily. The co-founders, Abhijeet Kumar and Munendra Singh, left BigBasket in November 2021 to start their own venture, focusing on helping other startups digitize.

As of now, BigBasket is a company with a workforce of over 5,000 employees.

Please note that the information provided is based on the knowledge available up to the provided context, and there may have been updates or changes since then.

BigBasket – Startup Story | How BigBasket Started?

The journey of BigBasket began after the founders, who had experienced the aftermath of the dot com bubble, decided to leverage their knowledge and create a unique website. They had previously established Fabmart.com in 1999, an online platform selling books, toys, and groceries. However, they faced challenges as the world was not ready for digital transformation at that time. In 2006, Fabmart was merged with a brick-and-mortar grocery chain, and the founders sold their startup.

In 2011, the team reunited and realized that the timing was right to venture into the online grocery space. The booming smartphone market and the availability of various products except groceries became their Eureka moment. They believed it was the opportune time to make a significant impact.

Initially, BigBasket fulfilled its orders by purchasing products from Metro Cash and Carry stores, using them as makeshift warehouses. Hari Menon, Co-founder & CEO of BigBasket, mentioned that they had people operating in Metro stores to manage their inventory and order fulfillment.

This approach allowed BigBasket to overcome the initial challenges of setting up their own warehouses and paved the way for their success in the online grocery business.

Please note that the information provided is based on the knowledge available up to the provided context, and there may have been updates or changes since then.

BigBasket – Name, Tagline and Logo

Supermarket Grocery Supplies Pvt. Ltd., trades as “BigBasket,” the name of which is drawn from the idea of shopping baskets, which the company extends to their customers online.  

The recent tagline of the brand reflects “Har Din Sasta.”

BigBasket – Business and Revenue Model

BigBasket’s private label business plays a significant role in the company’s revenue, contributing around 35% of its total revenue. The focus of their private labels is to bridge gaps in various categories such as organic food and high-end consumer products. They also offer lower-priced options for staples, fruits, and vegetables. Additionally, BigBasket provides idli/dosa batter on their online platform, catering to a niche market with minimal competition.

In the B2B segment, BigBasket serves its private-label products to around a thousand Kirana stores, large corporations, and HoReCa (hotels, restaurants, cafes). This expands their reach and distribution channels.

BigBasket follows a hybrid business model, combining the “inventory model” and “hyper-local model.”

Under the inventory model, BigBasket purchases products from established suppliers like P&G, HUL, mills, and farmers. These products are stored in warehouses and delivered to customers upon receiving orders. For perishable goods, BigBasket has tie-ups with local farmers and suppliers to procure the products as per customer orders.

The “hyper-local model” involves collaborations with over 2,000 grocery stores across India. This partnership enables BigBasket to deliver products within one hour from local neighborhood stores.

By opening its physical store, Fresho, BigBasket has entered the physical grocery space. This move is expected to generate additional revenue for the company and further strengthen its presence in the industry.

Please note that the information provided is based on the knowledge available up to the provided context, and there may have been updates or changes since then.

BigBasket – Startup Challenges

One of the primary challenges faced by startups in India, including BigBasket, is overcoming the initial resistance from customers to try a new service. This resistance is often high due to factors such as established buying habits, competition from local vendors, and skepticism towards new concepts.

For BigBasket, being a pioneer in the online grocery sector presented a unique challenge. Since the concept of purchasing groceries online was relatively new, it took time for consumers to build trust in the brand and embrace its services. Convincing customers to shift from traditional brick-and-mortar stores to online platforms required efforts to educate them about the convenience, quality, and reliability offered by BigBasket.

Additionally, retaining customers in the face of competition and changing market dynamics was another significant challenge. Competitors and local vendors posed a threat to BigBasket’s customer base. The company had to continuously innovate, offer competitive prices, provide a wide range of products, and ensure a seamless customer experience to stay ahead and retain their consumers.

Over time, through consistent efforts, effective marketing, and building a reputation for reliability, BigBasket was able to overcome these challenges and establish itself as a trusted brand in the online grocery industry in India.

Data Breach Issues

In November 2020, popular online grocery store BigBasket experienced a significant data breach, allegedly resulting in the leak of data belonging to over 20 million users on the dark web. The company, backed by investors such as Alibaba Group, Mirae Asset-Naver Asia Growth Fund, and CDC Group, filed a complaint with the Cyber Crime Cell in Bengaluru.

According to reports, a cyber intelligence firm called Cyble discovered that BigBasket had exposed sensitive information, including names, email IDs, password hashes, contact numbers, and addresses, on the dark web. It was also revealed that a hacker was attempting to sell this data for more than Rs 30 lakh.

In response to the incident, BigBasket acknowledged the potential breach and stated that they were assessing the extent of the breach in collaboration with cybersecurity experts. The company has taken immediate measures to contain the situation and has lodged a complaint with the Cyber Crime Cell to ensure that those responsible are held accountable.

BigBasket assured its customers that their confidentiality and security are of utmost importance. The company emphasized that it does not store financial data, including credit card numbers, and believes that this sensitive information remains secure. The data that may have been accessed includes email IDs, phone numbers, order details, and addresses. BigBasket stated that it has implemented a robust information security framework, utilizing top-notch resources and technologies, and will continue to work with experts to further strengthen its security measures.

Cyble informed BigBasket about the breach, mentioning that it may have occurred on October 30, 2020.

Please note that the information provided is based on the knowledge available up to the provided context, and there may have been updates or changes since then.

BigBasket – Competitors

BigBasket faces fierce competition in the market from several players. Some of its major competitors include:

1. PepperTap: Backed by Sequoia Capital, PepperTap offers online grocery delivery services and poses a strong challenge to BigBasket.

2. Grofers: Grofers, funded by SoftBank, is another significant competitor for BigBasket. It operates as an online grocery delivery platform and has gained popularity among customers.

3. Freshtohome: Freshtohome is a major player in the online fresh meat and seafood delivery segment. While it focuses on a specific category, it competes with BigBasket in terms of overall convenience and customer satisfaction.

4. Amazon: As a global e-commerce giant, Amazon has also ventured into the online grocery segment. With its extensive logistics network and customer base, it poses a strong threat to BigBasket.

5. Reliance Fresh: Reliance Fresh, part of Reliance Industries, is a well-established offline retail chain in India. However, it has also ventured into online grocery delivery, becoming a direct competitor to BigBasket.

6. Swiggy and Zomato: While primarily known for food delivery, Swiggy and Zomato have expanded their services to include grocery delivery. They leverage their existing customer base and delivery infrastructure to compete in the online grocery market.

Despite facing competition from these players, BigBasket has managed to maintain its position and expand its consumer base. With the support of Tata Group, BigBasket aims to strengthen its market standing and continue its growth trajectory.

BigBasket – Funding and Investors

Here are the details of the funding raised by Big Basket to date –

Date	Stage	Amount	Investors
June 2, 2022	Funding Round	$45 Million	Supermarket Grocery Supplies
April 13, 2022	Funding Round	$131 Million	Supermarket Grocery Supplies
April 15, 2020	Debt Financing	$51.8 Million	Alibaba Group
April 9, 2020	Venture Round	$60 Million	Alibaba Group
July 2019	Debt Financing	$14 Million	Trifecta Capital
May 2019	Series F	$150 Million	Mirae Asset-Naver Asia Growth Fund
January 2019	Venture Round	–	Growth Story
February 2018	Series E	$300 Million	Alibaba Group
October 25, 2017	Venture Round	$4.3 Million	Helion Ventures Partners
October 10, 2017	Debt Financing	$838.1K	Trifecta Capital Advisors
October 1, 2017	Venture Round	$5 Million	Bessemer Venture Partners
September 2017	Series E	$280 Million	Alibaba Group, Paytm Mall
March 2017	Debt Financing	$6.9 Million	Trifecta Capital Advisors
March 2016	Series D	$150 Million	Abraaj Group
August 2015	Series C	$50 Million	Bessemer Venture Partners
September 2014	Series B	$33 Million	Helion Venture Partners
April 2014	Bridge Round	$3 Million	Singapore-based private investor
March 2012	Series A	$10 Million	Ascent Capital

BigBasket – Acquisitions

Here are the details of Acquisitions by BigBasket –

Acquired	Date
Agrima Infotech	February 19, 2022
DailyNinja	March 24, 2020
Morning Cart	October 19, 2018
KWIK24	October 19, 2018
Raincan	October 18, 2018
Delyver	June 12, 2015

BigBasket – Growth and Revenue

BigBasket, a leading online grocery store in India, has achieved remarkable growth and revenue milestones. Here are the key highlights:

1. Revenue Growth: In the financial year 2021, BigBasket recorded gross sales worth $1.1 billion (INR 8000 crore), marking an impressive 80% growth compared to the previous year.

2. Tata Digital Acquisition: In May 2021, Tata Digital acquired controlling stakes in BigBasket, strengthening its position and opening new avenues for growth.

3. B2B Revenue: BigBasket’s B2B arm crossed Rs 6500 crore in revenue, showcasing its success in serving various customer segments.

4. BBNow: BigBasket is planning to launch its quick commerce product called BBNow. It aims to deliver grocery products to customers within 18-20 minutes in the hyperlocal geography. BBNow will be integrated into Tata’s super app, TataNeu, along with other brands like 1MG and Curefit.

5. Fresho: BigBasket recently ventured into the offline retail space with its physical store named “Fresho.” This technology-driven self-service store was launched in Bangalore and is a strategic initiative for the company.

6. User Acquisition: BigBasket’s mobile app is accessed by over 6 million customers across 26+ cities in India. The company focuses on meeting varied needs and shopping habits of customers in different cities, offering a personalized experience.

7. Financial Performance: BigBasket’s operating revenues grew by 73% in FY21, reaching Rs 6558 crore. The combined revenue of BigBasket’s B2B and B2C arms in FY22 was Rs 12,595 crore. Groceries and household products accounted for 97% of its FY22 revenues.

8. Expenses and Losses: BigBasket’s expenses increased with its surging revenues, but the company aims to improve its EBITDA margin. It reported a loss of Rs 812.7 crore in FY22.

9. Growth Highlights: BigBasket has a strong presence in 26+ cities and serves more than 125 million customers. It is endorsed by Bollywood celebrity Shah Rukh Khan and partnered with Alibaba. The company also entered the offline retail segment with Fresho and received permission to supply alcohol in West Bengal along with Amazon.

BigBasket’s consistent growth, strategic partnerships, and expansion into new segments position it as a leading player in the Indian online grocery market.

BigBasket – Awards and Recognitions

Among the notable awards and recognitions received by BigBasket are:

1. ‘Retail and eCommerce app of the year’: BigBasket was honored with the ‘Retail and eCommerce app of the year’ award at YourStory’s AWS Mobility Awards in 2017. This recognition highlights the excellence of BigBasket’s mobile app in the retail and eCommerce sector.

2. Top Rated CEO Award: Hari Menon, the CEO of BigBasket, was bestowed with the Top Rated CEO Award by Owler in 2017. This accolade recognizes his leadership and contributions to the success of the company.

3. Global E-commerce Award: At the Global E-commerce Award ceremony hosted by Ecommerce Europe in Barcelona, BigBasket secured the second position. This recognition demonstrates the company’s international standing and its impact on the global e-commerce landscape.

4. IIMA Alumni Young Achievers’ Award: Abhinay Choudhari, Co-founder of BigBasket, received the IIMA Alumni Young Achievers’ Award. This award acknowledges his outstanding achievements as a young entrepreneur and his contribution to the industry.

These awards and recognitions highlight BigBasket’s excellence in the retail and eCommerce sector, its leadership, global presence, and the accomplishments of its co-founders.

BigBasket – Partnerships

BigBasket has established strategic partnerships with various organizations to enhance its offerings and expand its reach. Some notable partnerships of BigBasket include:

1. Tata Group: In May 2021, Tata Digital, a subsidiary of Tata Sons, acquired a majority stake in BigBasket. This partnership has provided BigBasket with the support and resources of one of India’s largest conglomerates, enabling it to further strengthen its position in the market and explore new growth opportunities.

2. Alibaba Group: BigBasket received funding from Alibaba Group, a Chinese multinational conglomerate, which helped fuel its growth and expansion. The partnership with Alibaba brought expertise and resources to BigBasket, contributing to its success in the e-commerce industry.

3. Grofers: In 2015, BigBasket entered into a strategic partnership with Grofers, another prominent online grocery delivery platform in India. The partnership aimed to optimize operations, share resources, and leverage each other’s strengths to compete more effectively in the market.

4. Paytm: BigBasket collaborated with Paytm, a leading Indian digital payment platform, to offer convenient and secure payment options to its customers. This partnership allowed BigBasket customers to make seamless transactions using Paytm’s digital wallet and other payment solutions.

5. HDFC Bank: BigBasket joined hands with HDFC Bank, one of India’s largest private sector banks, to provide exclusive offers and discounts to HDFC Bank cardholders. This partnership aimed to enhance customer experience and drive customer loyalty by offering additional benefits to HDFC Bank customers.

6. ICICI Bank: BigBasket partnered with ICICI Bank, one of India’s premier banking institutions, to offer special discounts and cashback offers to ICICI Bank debit and credit cardholders. This collaboration aimed to attract and retain customers by providing them with exclusive benefits when they shop on BigBasket.

These partnerships have helped BigBasket strengthen its market presence, expand its customer base, and provide value-added services to its users. By joining forces with industry leaders, BigBasket has been able to leverage synergies and create a more comprehensive and rewarding shopping experience for its customers.

BigBasket – Future Plans

BigBasket has ambitious future plans to solidify its position as the leading grocery delivery platform in India. Some of its key future plans include:

1. Warehouse Expansion: BigBasket aims to establish warehouses in all the 26 cities where it currently operates. This expansion will help reduce delivery times to as low as 3 hours, ensuring faster and more efficient service for customers.

2. SKU Growth: By 2022, BigBasket plans to increase its stock-keeping units (SKUs) to 60,000. This will provide customers with a wider range of products to choose from, catering to their diverse needs and preferences.

3. Farmer Base Expansion: BigBasket intends to double its farmer base to 5,000. This emphasizes the company’s commitment to supporting local farmers and promoting sustainable agriculture practices.

4. Private Label Expansion: Leveraging its partnership with Alibaba, BigBasket plans to expand its private label range significantly. By sourcing and importing a range of merchandise through Alibaba’s resources, BigBasket aims to offer a private label selection that surpasses that of large-format supermarkets.

5. Fresho Stores: BigBasket has ventured into the offline retail market with its Fresho stores. The company plans to open 800 more stores in the next 5 years across 10 Tier 1 cities. This expansion aims to provide customers with the convenience of physical stores while leveraging BigBasket’s technology-driven approach to grocery shopping.

6. Sales Target: BigBasket aims to achieve sales of Rs 12,000 crore through its Fresho stores in the next 5 years. This reflects the company’s confidence in the potential of its offline retail presence and its ability to attract customers to these stores.

Overall, BigBasket’s future plans revolve around enhancing its operational capabilities, expanding its product offerings, strengthening its private label business, and establishing a strong presence in both online and offline grocery retail.

FAQs

What is the country of origin of BigBasket?
BigBasket originated in India.

Is BigBasket a Chinese company?
No, BigBasket is an Indian company. However, it has Chinese investors, such as Alibaba Group and TR Capital, who have provided significant funding to the online grocery retailer. BigBasket has received over $250 million from Chinese companies, including a recent funding of nearly $50 million from Alibaba.

Who are the owners/founders of BigBasket?
BigBasket was founded by V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh, and Abhinay Choudhari.

Does BigBasket have physical stores?
No, BigBasket is an exclusively online-based company and does not have any physical brick-and-mortar stores.

What is the BigBasket Wallet?
The BigBasket Wallet is a pre-paid credit account associated with your BigBasket account. It allows you to deposit a lump sum amount into your wallet, which can then be used for multiple purchases on the BigBasket platform without the need to pay for each transaction separately.