Bangalore-based online grocery store BigBasket is now reportedly selling the products on its platforms to 1,000 kirana stores, hotels and restaurants, reports Economic Times. It is unclear if the products it is selling are restricted to fruits and vegetables or also include other household items. We’ve written to the company for more details and will update this when we hear from them.
Hari Menon, the company’s co-founder and CEO, told ET that it entered the B2B space since the margin was thinner as compared to the 20-23% for B2C. BigBasket plans to target higher volumes with B2B sales. It has also forayed into B2B because it sources 60% of its fruits and vegetables from farmers, according to the report. The company plans to have 3,500 farmers on its platform from the current 1,100 by next year. It has 20 collection centres to pick up the goods from.
BigBasket’s ticket size for Express Delivery is Rs 600, while the regular delivery ticket size is up to Rs 1,500 from the previous Rs 800-900, according to Menon. BigBasket claims to make 40,000 deliveries daily, which is growing at 12-15% month on month. The company claims that it does 11,000 order deliveries in Bangalore daily. The company apparently has 8,400 employees.
FDI in food retail:
In June, the Indian government decided to allow 100% foreign direct investment (FDI) in single brand retail only in food retail. At the time, Menon said that the company would consider separating the food business from the rest of the portfolio to attract more investments from foreign players.
In March this year, BigBasket raised $150 million in a round of funding led by Abraaj Group to expand its one-hour express delivery service and launch a marketplace for speciality stores. The company then claimed to deliver 1 million orders every month. It had raised $50 million from Bessemer in August 2015, Rs 200 crore in September 2014 and $10 million in March 2012.
Delyver acquisition: In June last year, BigBasket acquired the hyper local delivery startup Delyver for an undisclosed amount to add to its delivery service depth, and expand within Bangalore.
Grocery store tie ups for BigBasket private labels: In June 2015, BigBasket tied up with around 1,800 offline grocery stores to sell its private label products at them. At the time, it said that its private labels accounted for around 35% of its revenues.
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