Bigbasket expects to achieve break-even in the next two years
Online grocery provider Bigbasket.com expects to achieve break-even in the next two years and increase revenue to USD 2 billion from the current Rs 1,000 crore (about USD 150 million) on the back of expansion of network.
"We are looking at financial year 2017-18 as break-even year for the entire company. By that time, we will be present in 30 cities. So with that scale, we would be close to USD 2 billion in terms of turnover as a company. We are trying to break-even in 2017-18 at that level of volumes," the startup's co-founder Abhinay Choudhari said at a press conference.
Almost 35 per cent of the sales comes from private labels in commodities such as vegetables, pulses and provisions, he added. He said the company raised over USD 100 million recently for expansion. According to him, the company would be present in at least 30 cities from the current 12 by 2017-18.
Bigbasket has launched 'bb express', its express delivery service to customers in Hyderabad. Customers opting for 'bb express' can be assured of delivery within 60 minutes of placing the order. Bigbasket operates its own logistics infrastructure for customer deliveries. Vans are used for full service delivery model, and bikes/riders for express delivery model as they can navigate and deliver quicker, he said.
Bigbasket offers 14,000 products from over 1,000 brands and has presence in Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi-NCR, Mysore and Coimbatore, with plans to expand to other cities soon, Choudhari said.
