Even though India’s fast-commerce sector is expanding at an unprecedented rate, BigBasket is trailing competitors Blinkit, Zepto, and Swiggy Instamart. The Economic Times said that Tata Sons, the parent company of Tata Digital, the firm that owns BigBasket, has voiced dissatisfaction with the slow growth of the e-grocery platform. Tata Sons considers this to be a strategic blunder, particularly since quick grocery delivery has emerged as a crucial arena of competition for industry leaders. In this blog, we will look into BigBasket’s growth and IPO.
Credits: Indian Retailer
Tata’s Shift in Strategy: Seeking External Investors
In an effort to stage a comeback, Tata Sons is urging BigBasket to raise up to $1 billion in external funding. Notably, Tata Sons itself is not eager to lead the funding round. Instead, it prefers onboarding a major financial investor to drive BigBasket’s revival. Sources indicate that investment bankers have already started discussions to structure the proposed funding round.
One of the sources quoted by The Economic Times stated, “Given how things have evolved, the idea is to onboard a large financial investor independently in BigBasket, and not at the Tata Neu level. Then, Tatas and other existing investors would put in the rest of the capital.” This indicates that Tata Sons wants to decouple BigBasket’s growth trajectory from its super app, Tata Neu, and allow it to operate independently.
A Potential BigBasket IPO in the Works?
The fact that this possible investment round would set the stage for BigBasket to go public on its own is among its most intriguing features. “Basically, this (funding) could lead to an IPO independently for BigBasket,” said a person with knowledge of the situation. If properly implemented, this might increase BigBasket’s competitive edge and allow it to access future funds via the public market.
Blinkit, Zepto, and Swiggy Instamart Lead the Market
The quick commerce sector has seen major disruptions, with Blinkit, Zepto, and Swiggy Instamart securing dominant positions. According to Citi’s latest market report, Blinkit leads the pack with a 41% market share, followed by Zepto, while Swiggy Instamart holds around 23%.
BigBasket’s relatively slow adoption of rapid delivery services has cost it significant market share. While it remains a strong player in traditional grocery e-commerce, its competitors have been aggressively expanding their instant delivery models, winning over customers with fast, convenient services.
BigBasket’s 2025 Strategy: Can It Make a Comeback?
Despite its slow progress, BigBasket has ambitious plans for 2025. CEO and co-founder Hari Menon had previously stated that the company aims to launch its own quick food delivery service next year to compete with Swiggy’s Bolt, Zepto Café, and Blinkit’s Bistro.
Menon outlined BigBasket’s expansion plans in a post on X (formerly Twitter): “2025 is ambitious (as it should be). (BigBasket will be) expanding to over 30,000 items to all Tier 1 cities, launching pharma deliveries with Tata 1mg, (and) rolling out food delivery of your favourite foods.”
If BigBasket can successfully execute these plans while securing fresh funding, it may still have a chance to reclaim its lost ground. However, it faces an uphill battle against well-entrenched rivals that have already captured consumer mindshare in the quick commerce space.
Credits: Business Standard
Will BigBasket Bounce Back?
Although BigBasket has been disadvantaged by its tardy reaction to the swift surge in commerce, the company may yet have a shot with a $1 billion capital increase and a plan for quick growth. Will its strategy changes be sufficient to compete with Blinkit, Zepto, and Swiggy Instamart? That is still an open topic. Or has swift commerce completely missed the boat?
The struggle for supremacy in India’s fast food delivery market is far from finished, that much is clear.
