BigBasket Business Model: Taking The Business To Newer Heights
Driving in traffic, finding a parking spot, walking down aisles looking for the product you want and carrying heavy bags to make your way home; grocery shopping should be anything but this. Hence, BigBasket was launched in India in 2011 as the perfect modern-age solution to this problem, making it India’s largest online supermarket. The company aims to close FY 2019 with a revenue of Rs. 3,500 crore and has plans for increasing it by the double for FY 2020. The company operates in 30 towns and cities in India and continues to focus on expansion. It has recently crossed the 100 million customers mark and is running close to 1 lakh orders per day.
What is BigBasket?
BigBasket, India’s largest online food and grocery store solves the hassle of home and grocery shopping by offering over 18,000 products and over 1000 brands. Whether you’re looking for fruits, vegetables, pulses, spices, packaged products, beverages, meat, personal care and home and kitchen products, you can get them all. The wide range of options, best quality products and competitive prices are other added delights while shopping through BigBasket. You can select a convenient time slot for the delivery of your order and choose to pay through multiple options like Debit/Credit Cards, Cash or Sodexo.
BigBasket Business Model: How BigBasket Makes Money?
BigBasket has raised a fresh round of funding of $150 million which will be used for marketing activities, building infrastructure and building technology. The company is also focussing on its milk subscription business, organic, gluten-free and healthy products to contribute largely to its revenue.
Here are more points on how BigBasket makes money:
Inventory-led Model
With a growth in BigBasket’s business, it moved to an inventory model for most of its products. The company purchases products from suppliers like P&G, HUL, farmers, mills and stocks them in their warehouses. To generate revenue, it adds a small margin to the cost price before vending them. Most of its profits and revenue are dependent on its private label products like Fresho, Royal Organic, Happy Chef Gourmet and more.
Hyper-local Delivery
BigBasket has also joined hands with more than 1800 neighbourhood grocery stores across India to deliver goods within an hour. This also applies to other perishable items. This step has led to a substantial decrease in wastage and aiding in decreasing inventory price as well.
Exceptional Customer Service
BigBasket offers lucrative discounts, bundling techniques, on-time delivery and convenience that helps them retain customers and maximize sales. This adds-on to the company’s revenue.
With amazing benefits for all its customers, BigBasket is the top choice when it comes to grocery shopping. Now you can get great discounts while shopping for your daily needs without leaving the comfort of your home.
