Big Basket Unlisted Shares

Business Divisions of BigBasket

BigBasket operates across several business divisions that cater to a wide range of consumer needs:

• Grocery and Essentials: The core of BigBasket’s offerings, including fruits, vegetables, packaged goods, and staples. This division remains the largest revenue contributor.
• Private Label Products: Through exclusive brands like bb Royal and bb Popular, BigBasket provides a selection of private label goods, which contribute to higher margins and customer loyalty.
• Subscription Services: BigBasket offers services such as bbDaily for regular milk and essentials delivery and bbStar for loyalty programs, providing customers with convenience and exclusive discounts.
• Pharmaceutical and Wellness: Post-Tata acquisition, BigBasket expanded into new product categories like pharmaceuticals and wellness, broadening its appeal to health-conscious consumers.
• Technology and Logistics: BigBasket has heavily invested in technology to enhance its platform and last-mile delivery capabilities, which has been crucial in maintaining its competitive edge in India’s rapidly growing e-commerce space.

Financial Highlights of BigBasket

BigBasket has seen significant revenue growth, but its financial journey also reflects challenges that need to be addressed for long-term profitability. Here are some key financial highlights:

• Revenue Growth: BigBasket has seen consistent growth in revenue, with its revenue increasing from INR 8497 crores in FY 2022 to INR 9468 crores in FY 2023. This upward trend shows strong market demand for its services, even in a competitive landscape. However, the company still faces challenges in achieving profitability, with a notable increase in operating costs.
• Gross Margin Improvement: BigBasket’s gross margin improved slightly from 15.04% in FY 2022 to 15.34% in FY 2023, and is expected to reach 17.12% in FY 2024. This reflects the company’s efforts to optimize product sourcing, reduce supply chain inefficiencies, and improve private label product offerings.
• Negative EBITDA and EBIT: Despite growing revenue, BigBasket reported negative EBITDA and EBIT for the past few years, including a loss of INR 1362 crores in FY 2023. The Operating Profit Margin (OPM) also remained negative, reflecting ongoing operational inefficiencies and the impact of heavy investments in expansion.
• Net Loss: The company has reported consistent Net Profit Margins (NPM) in the negative, with a loss of INR 1785 crores in FY 2023, compared to a loss of INR 1040 crores in FY 2022. This indicates that while BigBasket is expanding rapidly, it has yet to achieve profitability.
• Increasing Borrowings: BigBasket’s borrowings rose significantly in FY 2024, reaching INR 1580 crores. This increase in borrowings suggests that the company is relying on external funding to support its expansion plans and cover operational costs.