NEW DELHI: Tata Group-owned BigBasket goals to obtain profitability in six to 9 months, co-founder and chief advertising officer Vipul Parekh stated.
“Our slotted grocery delivery business is profitable today. Our daily business (BB Daily) is very close to profitability. Our quick commerce business (BB Now) is some distance away from profitability but we expect it to get profitable in six to nine months. The moment the quick commerce business gets profitable which is six to nine months from now, we should be completely profitable (at the company level),” Parekh instructed TOI in an interview on Monday.
The fast commerce or immediate grocery supply enterprise basically being a low order worth enterprise is troublesome to scale.
“We are not a standalone quick commerce business. We also have the daily milk business and online slotted deliveries. Since we use the same distribution centres and dark stores for all our businesses, the order volume per dark store is high which is a big advantage for us. The fixed cost per order comes down. Besides, we have private labels which lead to better gross margins,” stated Parekh.
Losses for BigBasket’s enterprise to shopper (B2C) arm Innovative Retail Concepts ballooned to Rs 1,535 crore in FY23 from Rs 813 crore in FY22, the corporate’s filings with the RoC sourced from enterprise intelligence platform Tofler confirmed.
BigBasket is contemplating constructing its offline presence considerably. “We are trying to figure out which is the best format for us to address the offline space,” stated Parekh.
The firm could begin getting ready for an IPO in 2025. “IPO will be a function of our profitability… I think, tentatively, 2025 is a good time to think about it,” Parekh stated.
“Our slotted grocery delivery business is profitable today. Our daily business (BB Daily) is very close to profitability. Our quick commerce business (BB Now) is some distance away from profitability but we expect it to get profitable in six to nine months. The moment the quick commerce business gets profitable which is six to nine months from now, we should be completely profitable (at the company level),” Parekh instructed TOI in an interview on Monday.
The fast commerce or immediate grocery supply enterprise basically being a low order worth enterprise is troublesome to scale.
“We are not a standalone quick commerce business. We also have the daily milk business and online slotted deliveries. Since we use the same distribution centres and dark stores for all our businesses, the order volume per dark store is high which is a big advantage for us. The fixed cost per order comes down. Besides, we have private labels which lead to better gross margins,” stated Parekh.
Losses for BigBasket’s enterprise to shopper (B2C) arm Innovative Retail Concepts ballooned to Rs 1,535 crore in FY23 from Rs 813 crore in FY22, the corporate’s filings with the RoC sourced from enterprise intelligence platform Tofler confirmed.
BigBasket is contemplating constructing its offline presence considerably. “We are trying to figure out which is the best format for us to address the offline space,” stated Parekh.
The firm could begin getting ready for an IPO in 2025. “IPO will be a function of our profitability… I think, tentatively, 2025 is a good time to think about it,” Parekh stated.
