BigBasket, the online supermarket owned by Tata Digital, emphasized that it isn’t in a hurry to expand its range of products. Its primary focus remains on groceries, despite the swift diversification into various categories by competitors like Blinkit (owned by Zomato) and Zepto, a Mumbai-based company.
“We evaluate new categories carefully and are very careful about entering segments beyond grocery… For now, we’ll remain a grocer and depending on the need we will keep adding categories as we go along,” said Hari Menon, cofounder and CEO of BigBasket.
It was reported on March 4 that Blinkit and Zepto are broadening their footprint by incorporating new categories such as fashion, beauty, electronics, and toys. They subsequently aim to roll out thousands of stock-keeping units (SKUs) within the next two months.
Continue Exploring: Quick commerce platforms Blinkit and Zepto expand into e-commerce, targeting fashion, beauty, electronics, and more
However, Menon stated that BigBasket will solely venture into adjacent categories to grocery, such as kitchen and home appliances.
He made these remarks during an event in Mumbai, where BigBasket unveiled a strategic collaboration with renowned chef and entrepreneur Sanjeev Kapoor to introduce a new frozen food brand called Precia. This brand will encompass three product categories: frozen vegetables, frozen snacks, and frozen sweets. The goal is to reach INR 100 crore in online sales by 2026.
Continue Exploring: BigBasket teams up with Chef Sanjeev Kapoor to introduce frozen foods brand ‘Precia’, targets INR 100 Crore in online sales by 2026
Discussing profitability, Menon mentioned that apart from its quick commerce arm BBNow, all other business segments are presently profitable. He also said that BBNow is expected to attain profitability within the next 6-7 months.
In FY23, BigBasket saw an 89% rise in losses for its business-to-consumer (B2C) arm, Innovative Retail Concepts, alongside a 5% growth in operating revenue. Similarly, its business-to-business (B2B) arm, Supermarket Grocery Supplies, experienced a 21% widening of losses.
Menon stated that in FY24, BigBasket is poised to achieve a growth rate exceeding 35%, surpassing the industry average.
Continue Exploring: BigBasket aims to turn profitable in 8 months; eyeing IPO in 2025
As previously reported, Tata Digital is considering integrating operational structures among its group assets, including BigBasket, the online pharmacy platform 1mg, and the online shopping site Tata Cliq, in a bid to streamline operations and improve market responsiveness. The strategy entails consolidating these individual apps under the Tata Neu umbrella.
BigBasket recently revamped its slotted delivery service to ‘supersaver’, committing to fulfilling orders within two hours and providing an extra 5% savings on various products.
Continue Exploring: BigBasket rebrands slotted delivery to ‘bigbasket supersaver’, targets 1-hour service for faster deliveries