BigBasket to completely move towards quick commerce

BigBasket, owned by Tata Digital, is shifting its focus entirely to quick commerce, which means delivering groceries in just 10 to 30 minutes. 

This change aims to compete in the fast-growing market where Blinkit, Zepto, Swiggy InstaMart, and Flipkart Minutes are already leading.

BigBasket's founders, Hari Menon and Vipul Parekh, revealed that their business will soon only offer these rapid deliveries. Currently, their quick commerce service, BB Now, already brings in over half of their total revenue. The company is targeting $1.5 billion in sales for this fiscal year and expects quick commerce to make up more than 60% of that.

This shift comes as BigBasket plans for an initial public offering (IPO) in 2025, once it becomes profitable. However, the company only saw an 11% increase in revenue for the fiscal year 2023, reaching Rs 9,468 crore, while its losses grew by 71% to Rs 1,785 crore. BigBasket expects a 30-35% increase in revenue for the current fiscal year.

In the quick commerce space, Blinkit is the leader with a 40-45% market share, followed by Instamart with 20-25%, Zepto with 15-20%, and BigBasket with 10-15%. 

The quick commerce model adds convenience but has also faced challenges, such as delivery commitments and a reduction in discounts compared to traditional grocery shopping. As BigBasket adapts to this trend, it remains to be seen if the shift will help them achieve profitability in this competitive market.