BigBasket witnessed only a slight rise in its total expenses last fiscal year, owing to reductions in employee benefits, advertising and promotion costs and other smaller expenditure
Innovative Retail Concepts, which operates BigBasket’s B2C segment, witnessed a slight uptick of nearly 6 per cent in operating revenue for FY24, reaching Rs 7,885 crore. The Tata-owned firm continues to experience stiff competition in the quick commerce space from rivals like Zepto, Swiggy Instamart and Blinkit.
Since the last two years, the company has seen a majority of its business come from its quick commerce service. For instance, BigBasket generates over 50 per cent of its sales from the 10-minute delivery segment, according to a report by the Economic Times.
During FY24, the company reported a net loss of Rs 1,267 crore, marking a 17 per cent plunge as compared to the previous year, as per the regulatory filing from Tofler cited in the report.
The company witnessed only a slight rise in its total expenses last fiscal year, owing to reductions in employee benefits, advertising and promotion costs and other smaller expenditure. Meanwhile, product sales contributed majority of the company's income. The second largest revenue source, advertisement income, remained relatively flat during the same period and stood at Rs 231 crore.
The company also announced a major development earlier this week. According to a Moneycontrol report, its subscription service arm, BBdaily, will soon be integrated into the main BigBasket app over the next few months. This move comes as the company looks to strengthen its position in India's rapidly growing quick commerce market.
Currently, BigBasket operates two separate apps, the main BigBasket app and the BBdaily app for subscriptions. The merger will help the company make its operations more streamlined.
Earlier this year, Tata Sons had paused new investments in its digital ventures for the first time in eight years to focus on reshaping the profitability strategies of BigBasket, ET reported.
As for now, the company is planning to raise anywhere around $80-100 million through a combination of debt and equity to support its expansion plans.