bigbasket

Bangalore-based online grocery retailer BigBasket will be tying up with around 1,800 grocery stores to sell its private label products at their offline stores, reports Livemint. This will include products like staples, fruits, meat, vegetables and bread which it sells under the brand names Royal, Popular and Fresho.

BigBasket mentions it will also launch another private label, a coffee brand, sometime next week, and eventually venture into flavored tea and cookies. Additionally, the platform is looking to expand to 50 new locations within a year. These locations will be clustered in groups of 5-6 cities, which will then be served by six central locations. The company mentions that products will be transported everyday from central locations to cities in these clusters.

Interestingly, the company mentions its private labels currently account for around 35% of its revenues.

Online to offline trend: Online healthcare and fitness store HealthKart launched its second offline store in Chandigarh in August 2013. Similarly, online baby-care products retailer Firstcry.com had announced its plans to increase its number of offline franchise stores to 100 by setting up 30 new stores by end of 2014, while Meritnation had said it would launch 6 new offline digital learning centres starting with Chandigarh and Lucknow.

Note that, at launch of its offline store, HealthKart had said that offline stores were being set up as an experiment in order to increase brand awareness among consumers using offline channels. Similarly, this move makes sense for BigBasket, as it will help it establishing its private label brands in the market.

BigBasket funding: In September last year, BigBasket raised Rs 200 crore investment in a round led by Helion Ventures and Zodius Capital and participation from existing investors Ascent Capital and LionRock Capital. The company said then that it would use the funds to expand operations to 10 Indian cities by the end of this year.

Note that this investment also included the $3 million investment made by LionRock Capital in April last year. BigBasket co-founder Hari Menon had then mentioned that this investment would be part of its next round. Prior to this, BigBasket had raised $10 million from Ascent Capital in March 2012. GrowthStory’s Meena and K Ganesh had also invested in this venture.

Founded in December 2011 by Fabmall founders VS Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh and Abhinay Choudhari, BigBasket currently operates in Bengaluru, Hyderabad, Chennai, Delhi, Pune and Mumbai. As of now, the company sells its Fresho, Popular and Royal branded products through around 250 stores, other than its own website.

Competition:

– Last month, local search listing platform AskMe acquired the online grocery marketplace Bestatlowest.com for and undisclosed amount. Bestatlowest’s co-founders Ankit Jain and Amit Nigam, as well as the company’s 25 member team, were expected to become a part of AskMe.

– Godrej Group’s premium food products retailer Nature’s Basket had acquired Mumbai-based online grocery store Ekstop.com in February this year, and later integrated it into Nature’s Basket’s online store.

– In April, hyperlocal online grocery retailer Grofers acquired mobile grocery startup My Green Box. Similar to the AskMe acquisition, My Green Box’s 15 member team joined Grofers and MyGreen Box founder Varun Khurana was expected to act as the CTO of Grofers.

– Last year in November, Reliance Industries’ retail arm Reliance Retail had launched an e-commerce store called RelianceFreshDirect.com to delivery grocery products in some neighborhoods of Mumbai. The platform sells vegetables, fruits, groceries, dairy products, confectionery products, packaged food and personal care products to the residents of Navi Mumbai, South Mumbai and parts of Thane, similar to Ekstop.

– Other players in this space include FreshWorld, LocalBanya, Amazon India’s KiranaNow, PepperTap, Delyver.com, BigBasket and SRSGrocery.com among others.

*Disclaimer: AskMe is an advertiser with MediaNama.