BigBasket.com is India’s largest online supermarket and allows a customer to walk away from the drudgery of grocery shopping and welcome an easy relaxed way of browsing and shopping for groceries. The company currently operates from Bangalore, Mumbai and Hyderabad and has a diverse portfolio that carries more than 12,000 products and over 1,000 brands.
The grocery retail market in India is growing at about 10% CAGR and is about USD 350Bn in size. Within this the online grocery market is expected to be about USD 10Bn in the next 4 years from now. A majority of this market is likely to be concentrated in the urban cities in the country.There are a number of start-ups such as ZopNow, Aaram-Shop, and Farm2Kitchen in this category with each city having multiple local players. The winner in this category is going to be one who addresses the multiple challenges in delivering a great service to the customer.
The story of how Bigbasket started is quite interesting and a story of sheer passion and belief in the cause. In 1999, Mr V S Sudhakar, Mr Hari Menon , Mr Vipul Parekh , Mr Abhinay Choudhari and Mr V S Ramesh started one of the first online businesses in India called Fabmart.com. In 2001, they started an online groceries business as a part of Fabmart. In spite of the market being in its infancy then, Fabmart.com did exceedingly well. They then went on to setup a physical retail chain called Fabmall which was a chain of grocery supermarkets in the South of India. This business was sold in 2006, and eventually renamed More by the buyers, the Aditya Birla Group. The founders however were always enamoured by online grocery and in 2011, the same team recoupled and launched Bigbasket.com.
Today Bigbasket.com is one of the leading online grocers in India. The company bases its success on the three pillars namely exceptional customer focus ( Bigbasket offers same-day delivery across a city, 99.3% on time delivery, 99.5% order fill rate and a no questions asked customer return policy, all of which has contributed to high customer loyalty and excellent customer feedback. On top of it all, BigBasket compensates a customer every time it is not able to deliver on its promise thus ensuring that there is consistent focus on raising the bar higher.) , wide range and variety of products ( They have more than 40% of their sales coming through their own brands.BigBasket has further innovated by offering products such as cut fruits and vegetables, a range of recipe mixes and have recently launched their own bakery in Bangalore that delivers bread baked to order ) and continuous innovation with the help of technology (BigBasket has both android and iOS mobile apps which allow customers to order groceries on the go. Features such as “Smart-basket” predicts what a customer needs more often and reduces the time-to-order to “within 5 minutes”.)
Today, the five founder of Bigbasket.com are some of the most experience and well known names in the industry with significant experience of building storng and successful businesses. Mr Hari Menon is now the CEO and Head of Merchandising at Bigbasket.com. Prior to this Hari was the CEO of Indiaskills, the Vocational Education JV of Manipal Group with City & Guilds, UK. He was also the Co-founder of Fabmall, one of the pioneers in the e-commerce and retail space in India. Hari has served as the Country Head at Planetasia, one of India’s first Internet services businesses and also worked with IT major Wipro as a Business Head in the Infotech business. Hari is an alumnus of BITS Pilani. Mr V S Sudhakar is the founder and CEO of Fabmall, a leading online and physical retail business. Prior to Bibbasket, Sudhakar was the CEO of Planetasia, the first online focused services business in the country. He has significant experience in general management at senior levels in the IT industry.Mr Vipul Parekh is the Head of Finance & Marketing at Bigbasket.com. Prior to this Vipul was an investment Director at Peepul Capital, a leading Private Equity Fund. He has also been the Co-Founder of Fabmall and a business development head in the Wipro Infotech Group. Vipul is an alumnus of IIM Bangalore. Mr Abhinay Choudhari is the Head of New Initiatives at Bigbasket.com. Prior to this, Abhinay worked with leading IT companies in consulting engagements with key retail majors like Tesco and LEGO across the world. This IIM Ahmedabad alumnus was also the founder of Stylecountry.com. Mr V S Ramesh is the Head of Logistics & Supply Chain at Bigbasket.com. He was also a Co-founder at Fabmall. Prior to Fabmall, he ran the operations and logistics for a large fleet of ships for a shipping major. He has over 21 years of experience in the Indian Navy handling Operations and Logistics. He holds an Electronics Engineering degree from the Karnataka University.
Last month Bigbasket crossed a million orders delivered. Bigbasket currently operates in 3 cities – Bangalore, Mumbai and Hyderabad and will expand shortly to Pune, NCR and Chennai. The company which is 1000 people big has more than 200,000 customers in three cities and are growing at 20% month on month. They deliver around 5000 orders a day across the three cities and their average order value across the three cities is about Rs. 1500/-.The company is now planning to expand to 10 more cities over the next 12 months. Also they are planning to undergo a significant expansion in their product range, gain more depth in each category and add new categories of products. With their focus on faster delivery times across the board and innovations online and on mobile to make grocery shopping a breeze, customer have a lot to look forward to in the coming months !
Bigbasket recently raised a funding of Rs 200 Crores . This makes our total fund raise (Series A and B) at Rs. 280 crores. This round (Series B) of Rs 200 crores came from Helion, Zodius and existing investors who participated including Ascent Capital, Lion Rock Capital and serial entrepreneurs Ganesh Krishnan and Meena Ganesh. Bigbasket plans to use these funds to primarily expand into new geographies (Pune, Delhi, NCR, Chennai will be immediate) and 4 more cities soon after. Another key area of investments will be technology. They plan to significantly enhance customer experience, both online and mobile and enhance our backend processes through increased investments in technology. Investments will also be made in creating additional cold room facilities to significantly increase their range of fresh produce. They also plan to invest heavily into last mile delivery, including energy efficient vehicles which are cold chain enabled.