Innovative Retail, which runs BigBasket, has more than doubled its business to cross the INR 1,000-crore sales mark in FY17, indicating the growing preference for online grocery-shopping in India despite sluggish trends in the broader consumer market.
Innovative Retail reported revenues of INR 1,090 crore in the year to March 2017, translating into a 107% jump from INR 527 crore a year ago. Losses increased to INR 191 crore last fiscal, compared to Rs 103.4 crore in FY16.
BigBasket has two operating entities. Supermarket Groceries sources products from companies and sells them to Innovative Retail, which in turn runs the consumer-facing portal and makes the last-mile delivery to comply with the norms on foreign direct investment (FDI) in direct online retail.
Hari Menon, founder of the company that is backed by a clutch of investors, including Helion Venture and Ascent Capital said, “With fill rates and on-time delivery over 99%, our performance is the best even among global retailers. We have invested heavily in marketing and creating infrastructure to help maintain our focus on customer experience. Our larger markets such as Bangalore and Hyderabad have already broken even at an operational level. We hope to close the current fiscal with sales of over Rs 2,000 crore.”
Basket have launched omni-channel initiatives, although the scale is not too big right now. So far, the omni-channel strategy is mostly restricted to a few lifestyle retailers, including Shoppers Stop, Arvind and Aditya Birla Retail, as grocery delivery has a more complex value chain than fashion.