Fri. Mar 29th, 2024

Bengaluru-based online grocery startup BigBasket is looking to grow its private labels business, as it targets 40% of projected revenue to come from private labels.

The grocery startup posted ₹2,000 crore in sales, during the previous fiscal. It is looking to boost the numbers to ₹3,500 crore in this fiscal.

Hari Menon, Co-Founder and CEO, BigBasket, said, “Private labels are around 34 per cent of our business now and we plan to scale this to 40 per cent in about a year. The incremental 6 percentage points of revenue will come from non-fruits and vegetables and non-staples.”

The grocery startup plans to introduce a lot of new categories to the private labels vertical, in order to help achieve the expected growth.

Currently, the majority of BigBasket sales are attributed to FMCG, including both food and non-foods, accounting for more than 50% of its overall business. While 30% is attributed to staples, which includes 14.5% from private labels, and 18% comes from fruits and vegetables.

The startup will be announcing the launch of beauty as a new category, over the next few days, which will include imported products as well, as it expands to different segments. It also plans to launch operations in Kochi, in order to expand presence.

BigBasket was founded by Hari Menon, Abhinay Choudhari, Vipul Parekh, VS Sudhakar, and VS Ramesh in 2011. The online grocery startup has grown to 10 million subscribers and delivers more than 1 lakh orders per day.

Earlier in February 2018, BigBasket raised $300 million in a funding round led by Alibaba, along with participation from Sands Capital Ventures, International Finance Corporation, and Bessemer Venture Partners, and Abraaj Group. So far, the startup has raised more than $885 million, according to Crunchbase.

In October 2018, BigBasket acquired hyperlocal delivery startup RainCan, foraying into the subscription-based hyperlocal delivery segment.

By Varun

Startups | Books | Ideas

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