In India’s glittering unicorn crown, the e-commerce behemoth is one of the brightest stones. It has revolutionized Indian grocery shopping. Almost eight years after its launch, BigBasket became a unicorn, making it one of the fastest-growing companies in the world.
BigBasket is an online grocery marketplace or platform that collects products from stores and delivers them directly to the customer’s doorstep. Grofers has to compete with Amazon and other big players like Grofers in this market.
However, it has since become one of India’s most popular online supermarkets. Let’s now take a closer look at this unicorn startup’s business model.
BigBasket’s Beginnings Can Be Traced Back To
We can learn a lot about the early days of BigBasket by looking at their story of failure and eventual success.
With the help of four of his friends – Abhinay Choudhari, Vipul Parekh, and VS Sudhakar – Hari Menon and his buddies launched Fabmart, an online retail website, in 1999. However, this failed to draw in enough clients and had to be abandoned.
In the wake of this, they embarked upon yet another endeavor. The only difference this time was that the supermarkets were part of a physical chain. As Fabmall, it was known. Later, Trinethra joined with Fabmall to form Trinethra Trinethra. There were roughly 200 outlets spread over Andhra Pradesh, Kerala, Tamil Nadu, and Karnataka. Because of this success, the founders of the chain decided to sell up and go to the Aditya Birla Group instead.
The BigBasket app was finally launched in December 2011 after the five buddies decided to do so.
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BigBasket’s Business Model
A Large Variety Of Products Are Available To Customers At BigBasket, Which Is An Entirely Online Marketplace. It Features More Than 10,000 Brands And 18,000 Goods On Its Website And Mobile App. These Products Include, But Are Not Limited To, Fresh And Frozen Produce, Packaged Foods Like Rice And Lentils, And Beverages.
The Just-In-Time Concept Was Initially The Major Model Followed By BigBasket. Everything, Including The Unpreserved Products, Were Brought In Pursuant To A Specific Order. There Was No Record Of What Was In Stock At Any One Time. As Orders Came In, Delivery Boys Would Pick Up Merchandise From Stores And Deliver It To The Recipients.
Instead Of Relying On The Just-In-Time Approach, The Business Now Employs A Different Strategy. The Inventory Model Has Been Adopted. It’s A Standard That Practically Every Product Must Adhere To. It Entails Buying Things Like Perishables Directly From Farmers And Manufacturers Like Hul, P&g, And Others Directly. Their Warehouses Are Loaded With These Items For Immediate Shipment.
The Products Are Also Sourced Locally And Domestically. The Product Itself Dictates The Source Of The Product’s Origin. While Some Things Are Purchased From Major Producers Like Potatoes, Onions, And Apples, Others Are Bought From Local Markets Or Mandis, As Well As Farmers In The Area.
In The Present BigBasket Situation, Over 20,000 Orders Are Processed And Delivered Every Day, And Around 2000 Team Members And Staff Are Involved In This Process. A Hyper-Local Strategy Has Been Taken Where It Has Teamed Up With Roughly 1800 Local Food Stores Across India To Ensure Rapid And Effective Delivery. This Was Done So That The Ordered Goods May Be Delivered Within An Hour.
‘Delyver‘, A Delivery Company, Was Also Acquired By BigBasket To Strengthen Its Delivery Service. In Spite Of The Fact That Delyver Is A Separate Company, Its Co-Founders Are Participating In BigBasket’s Administration.
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How To Download The BigBasket App On Your Smartphone?
- Get Your Hands On Your Phone And Head To The Google Play Or Apple App Store
- As A Second Option, Type “BigBasket” Into The Search Bar.
- Install The App By Clicking The Install Button Or By Clicking Here To Get The Android Version.
- The iOS Version Can Also Be Downloaded By Clicking Here.
BigBasket’s Competitors
Having To Compete With Amazon, Grofers, And Dunzo In The Grocery Delivery Business, BigBasket Has To Deal With A Lot Of Competition. With Jio Mart’s Entry, The Competition Is Only Going To Get More Difficult.
Grofers (Blinkit)
Founded In 2013, This Gurugram-Based Start-Up For Online Grocery Delivery Serves Customers Nationwide. Because It Owns And Operates Its Own Warehouse, This Business-To-Consumer Approach Ensures Prompt Shipment Of All Orders.
In 2014, The Company Received Its First Round Of Financing, Totaling $500,000. Approximately $536 Million Was Invested In It Last Year. Softbank, Tiger Global, And Sequoia Capital Are Among The Company’s Backers. Grofers Has A Large Presence In Several Indian Cities, As It Competes With BigBasket For Market Share.
Dunzo
You May Order Anything From Groceries And Medicine To Food And Supplies With This 24-Hour Startup. Bengaluru, Delhi, Gurugram, Pune, Chennai, Jaipur, Mumbai, And Hyderabad Are Just A Few Of The Main Indian Cities Where It’s Available.
During The Coronavirus-Induced Shutdown, It Became Extremely Popular Because Of Its Goal Of Providing Lightning-Fast Delivery. In Addition, It Is The First Indian Startup To Receive Money Directly From The Search Engine Giant. Google, Lightbox Ventures, Stc Ventures, And Other Investors Contributed Around $45 Million To Dunzo. A $200 Million Valuation Was Put On The Company In This Round Of Financing. Dunzo Has Raised A Total Of $81 Million In Funding To Date.
JioMart’s arrival means that these startups will have to make way for a new player in the market.
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The End Of The Story
BigBasket Has Big Intentions For The Future In Terms Of Growth And Expansion. As Stated By The Company’s Ceo, The Company Aspires To Break Even In All Of Its Markets.
A Total Of Three New Ventures Have Been Introduced By The Company: Bb Daily, Bb Instant, And The Bb Beauty Store. A Portion Of The Money Received Would Go Toward The Enterprises’ Operational Expenses. In Contrast To The Other Businesses, BigBasket’s Bb Beauty Store Works Under The BigBasket Umbrella. It Also Intends To Expand Its Service Area In The Locations Where It Now Operates. To Capitalise On Its Current Success In Locations Like Kochi And Kolkata, The Company Has Decided To Stop Expanding Into New Cities For The Time Being And Focus Instead On Increasing Orders From Existing Customers And Expanding Further Into The Areas Where It Already Has A Presence.
It’s Unlikely That BigBasket Will Go Public Anytime Soon, Given All Of The Above And The Lack Of Investor Pressure. Future Development And Investment From Private Investors Are Likely To Follow The Company’s Expansion Objectives.