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Launch · Commerce & Consumer Brands

BigBasket to power Tata Neu's quick commerce push

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BigBasket logo
Date
Company
BigBasket
What it does
Online grocery and quick commerce
Kind
Launch
Sector
Commerce & Consumer Brands

What they do

BigBasket runs online grocery and quick commerce delivery across India

What happened

It will power Tata Neu's quick commerce service Neu Flash, already using BB Now

Why it matters

Nearly 80% of BigBasket orders now come from quick commerce; bigBasket's average order value of ₹850 is higher than rivals Blinkit, Instamart, and Zepto

The details

  • BigBasket will power Tata Neu's quick commerce drive, says CEO Hari Menon.
  • The quick commerce service is called Neu Flash and is currently powered by BB Now.
  • Neu Flash sells groceries, electronics, fashion, health, beauty, and baby care products.
  • Nearly 80% of BigBasket orders now come from quick commerce.
  • BigBasket's average order value (AOV) is above ₹850, higher than competitors: Blinkit ₹707, Swiggy Instamart ₹534, Zepto ₹625.
  • BB Now expects to achieve a positive contribution margin soon.
  • The company plans to introduce heavy appliances (washing machines, ACs) with 1-hour delivery from 300-400 dark stores by June-July 2025.
  • From May 1, 2025, BB Now will sell prescription (RX) drugs; OTC medicines are already offered.

The bigger picture

  • BigBasket's quick commerce expansion has pushed back its IPO plans by 12 months.
  • The Tata Group philosophy is not to take a company public while it is making losses.
  • BB Now expects to be profitable in 4-5 months; over 100 stores are already profitable.
  • More Tata brands are expected to integrate into the quick commerce ecosystem.

About the business

  • BigBasket operates over 500 dark stores, of which 300 are already large-format (4,000-5,000 sq ft).
  • The remaining 200 stores will shift to large format by end of March 2025, and another 200 new stores will be added by July 2025, taking the total to 700.
  • SKUs have increased to 25,000-30,000 from earlier 9,000-10,000.
  • Quick commerce is available in 30 tier-II, III, and IV cities.
  • Luxury and fashion products through Tata Cliq are available in 3 cities and ramping nationwide.
  • Heavy appliance delivery covers a 6 km radius (vs 1.5 km for regular quick commerce).

What happens next

  • Shift remaining 200 stores to large format by end of March 2025.
  • Add 200 new stores by July 2025, reaching 700 total.
  • Launch heavy appliance 1-hour delivery by June-July 2025.
  • Start selling prescription drugs from May 1, 2025.
  • Achieve profitability in 4-5 months.
  • IPO plans pushed back by 12 months.

Founders

  • Hari Menon, Co-founder and CEO

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