BigBasket, one of the biggest online grocery firm has announced crossing of annualized gross sales run rate of $1 billion first time in the history of the company in May. One of the biggest factors in the company’s success is the increased demand in online groceries due to physical restrictions due to Covid-19.
BigBasket is the second sector-focused firm to achieve this milestone of billion dollars sales after fashion platform Myntra and other horizontal verticals like Amazon and Flipkart. Myntra has a gross merchandise value (GMV) of over $2 billion.
Hari Menon, CEO of BigBasket said in a statement that it has clocked Rs 650 crore or about $90 million sales after discounts in the month of May. The sales graph has remained almost similar in June too. The Bengaluru-based company is also planning to raise $250-300 million from existing and new investors as it aims at a valuation of $1.5-2 billion.
With the launch of Reliance’s Jiomart, it is necessary for the companies to be prepared and this funding will come in handy for them to compete with them and have a firm standing in market. Morgan Stanley and Goldman Sachs have been appointed to look for potential investors, as told by Menon.
“We grew 35% on a month-on-month basis in April, and then the next two months we grew roughly about 18% and 20%. It (the demand) is holding really well. Including BB Daily, we are clocking 3.5 lakh orders, which was around 2.2 lakh orders a day (before pandemic),” Menon said. BB Daily is a separate micro-delivery platform of Bigbasket, which delivers milk, bread and eggs on a subscription basis.
“The whole thing (business) got advanced by 12-15 months. Operational profitability is a few months away,” Menon added. Fruits and vegetables have an increased contribution of 20-22% from previous 16-18%.