This blog helps you understand Bigbasket business model, competitors, fundings, and much more. BigBasket was founded by Hari Menon along with his 4 friends VS Sudhakar, V S Ramesh, Vipul Parekh, and Abhinay Choudary in 2011. Big Basket is one of India’s largest online grocery supermarkets with 18000+ products and 1000+ brands listed on their catalogue.
Conception of BigBasket
It all started in 1999 when these 5 friends decided to launch FABMART an online retail website for groceries. However, The idea of Fabmart didn’t work as the idea was ahead of its time as at that time people were not that aware of the internet.
After that, they decided to focus on a physical retail chain for groceries and they launched FABMALL. With lots of hard work and implementing various business strategies, their business started to 200 stores across Tamil Nadu, Karnataka, Andhra Pradesh, and Kerala. In addition, After some time they decided to sell-off the business to Aditya Birla Group.
Hari with his friends started thinking of getting back the idea of selling groceries online. They decided to discuss the idea with angel investor Krishnan and Meena Ganesh. Krishnan liked the idea and along with serial entrepreneurs decided to seed BigBasket. Finally, they launched BigBasket.com in the year 2011.
BigBasket Business Model
BigBasket has a large variety of products to choose from. Here is the BigBasket business model used to provide unmatched customer service.
- Initially, they decided to adopt a ‘Just-in-Time Business Model’ in which all the goods were bought from a retail store against every order received. In other words, whenever the customer placed an order, the delivery boy directly picked the order from the BigBasket partnered retail store and delivered it to the customer.
- As their business grew they decided to opt for the ‘Inventory Business Model’ for most of their products. Additionally, they started buying goods/products directly from the suppliers and stock the goods in their warehouses.
- They decided to source fresh vegetables and fruits locally from Mandis as well as nationally from major producing locations.
Here is a list of some competitors of BigBasket:
- Fresh to Home
BigBasket BUSINESS MODEL: FUNDING
- After their launch, in 2012, they received funding of $10 Million from Raj Kondur ( co-founder, ChrysCapital) and Ascent Capital.
- Furthermore, In 2014, they raised $100 Million through 15 funding rounds.
- Now, the valuation of BigBasket is $1.2 Billion making it a Unicorn company in India.
- Investors of Bigbasket include Alibaba Group, Abraaj Group, Ascent Capital, Bessemer Venture Partners, Brand Capital, Helion Venture Partners, Sands Capital Ventures, Trifecta Capital, and Zodius Capital, ICICI Venture, IFC Venture Capital Group, LionRock Capital, Paytm Mall, and Sands Capital Management.