#IndianStartupData : BigBasket Revenue At INR 178 crores in FY 14-15; Losses at INR 61 crores

BigBasket spent INR 22 crores on advertising and promotional expenses in FY 14-15 which was a 420% increase over the previous fiscal.

Hyperlocal grocery delivery startup BigBasket saw a 2.5 times growth in its revenue in FY 14-15 as its revenue figures reached INR 178 crores.


BigBasket, which is owned and operated by Supermarket Grocery Supplies Private Limited, was founded by Hari Menon,V.S. Sudhakar,Vipul Parekh and AbhinayChoudhari in October 2011. It is an online grocery store that operates through the website and mobile app and provides home delivery in on-time and flexible delivery time slots.

BigBasket is currently present across 15 cities in India. The company claims to have more than 18,000 products in numerous categories including grocery & staples, fruits and vegetables, beverages, branded foods, personal care, household among others.

Financial Performance

BigBasket reported revenue of INR 178 crores against loss of INR 61 crores in FY 14-15. The revenue and PAT figures during the last fiscal were INR 71 crores and INR 22 crores, respectively. The revenue from operations stood at INR 170 crores in FY 14-15.


The breakup of revenue sources is as follows:


BigBasket operates on an inventory-led model and, hence, the biggest expense for the company was the purchase of stock-in-trade which stood at INR 171 crores.  The company spent INR 22 crores on advertising and promotional expenses in FY 14-15 which was a 420% increase over the previous fiscal. The following is the breakup of the major expenses of the company:



As per the documents filed with the Registrar of Companies, the company has raised a total funds of INR 695 crores from various investors including Bessemer Ventures, Helion Partners and Sands Capital. The latest investment of INR 124 crores was done by the US based Sands Capital.


BigBasket competes with players like Grofers, Peppertap and ZopNow in the online groceries segment. Here is how it compares with the rest in FY 14-15:


It is worth noting that most of the other players are in their early stages and have been operational for 4 years or less.


The online grocery store segment has seen a lot of action in the past one year. Grofers recently raised $120 million from Japan’s SoftBank in November 2015. However, it shut down operations in 9 tier-2 cities in January this year as it did not deem the market ready. Another player LocalBanya shut shop in 2015. The space has also attracted E-commerce giants like Flipkart, which has launched Flipkart Nearby; Amazon that launched Amazon KiranaNow; Snapdeal invested in Peppertap in September last year. Godrej also launched Nature’s Basket to compete in the segment. Ola Cabs has also come up with Ola Store for hyperlocal grocery delivery.

The well-funded companies have been on an acquisition spree. Grofers has acquired rival MyGreenBox in April last year along with acqui-hiring Tech companies SpoonJoy and Townrush. BigBasket acquired hyperlocal delivery Delyver in June, 2015. PepperTap  also acquired Bangalore based hyperlocal grocery delivery startup Jiffstore.

Among acquisition, closures and big entrants, it will be interesting to see how the hyperlocal grocery market evolves in the coming year.

[About the author: Vishal and Anchal form the team that runs the Tofler blog. They like to explore and track companies, their performance and senior management. Tofler (tofler.in) is a Business Research Platform.]

1 comment
  1. The real concern here is that these figures point to a negative gross margin business! (revenue from operations: Rs 170 crore, Purchase of Stock-in-trade: Rs 171 crore). This is when none of the other direct expenses like Payment Gateway costs, packaging, etc have been taken into consideration.

    Being negative ops margin due to overheads is normal for a startup. But being negative gross margin due to direct expenses is not.

    An interesting analysis would have been comparing the COGS/rev from ops, year over year. Is this the kind of business where COGS decreases with scale? Although I am sure anyone with good insight into this vertical will be able to tell the max gross margins possible with scale…

    If this is to be a real business, as opposed to a business simply to raise paper valuations, then the team at BigBasket needs to really push for cross-selling items, increase its ticket size, focus on regular and more frequent returning customers. Already, BigBasket displays non-grocery items – would be interesting to see the ratio of food items vs non-food regular items vs. non-food occassional items.

    I wonder – what if BigBasket delivery boys carry a “deal” with them everyday. Say, Namkeen at discounted prices. Can they at the doorstep help increase the ticket size? Pushing a particular product the entire week, may give them the scale needed to bulk purchase and make better margins as well. Food for thought (no pun intended!)

    This grocery business is tough, yet interesting! Best of Luck to them!

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