Results · Commerce & Consumer Brands

Bigbasket reports widening losses in FY17

By Startup Enthusiast · 30 May 2018

Date: 30 May 2018
Company: BigBasket
What it does: Online grocery delivery platform
Kind: Results
Sector: Commerce & Consumer Brands

What they do

Bigbasket is an online grocery delivery service in India

What happened

Its wholesale arm revenue doubled to Rs 1,176 crore but operating loss rose 12% to Rs 312 crore in FY17

Why it matters

Overall loss surged 7x to Rs 653 crore due to a fair value change on financial liabilities; the company is looking to raise $500 million and expand offline…

The details

Bigbasket's wholesale arm Supermarket Grocery Supplies reported Rs 1,176 crore revenue in FY17, double from Rs 563 crore in FY16.
Its operating loss was Rs 312 crore in FY17, up 12% from Rs 277 crore in FY16.
Overall loss for the wholesale arm was Rs 653 crore in FY17, a 7x jump from Rs 95 crore in FY16.
The jump was due to a fair value change on financial liabilities (an accounting adjustment that revalues debts).
Employee benefit expenses of Rs 138.9 crore were a major reason for the net loss.
Retail arm Innovative Retail revenue was Rs 1,090 crore in FY17, a 107% jump from Rs 527 crore in FY16.
Its loss was Rs 191 crore in FY17, up from Rs 103.4 crore in FY16.
Bigbasket is negotiating to acquire micro-delivery platforms RainCan and SuprDaily to maintain leadership.

The bigger picture

Bigbasket raised $300 million in Series E led by Alibaba in February 2018.
It is looking to raise another $500 million to compete with Grofers, Flipkart, and Amazon.
The company plans to expand into offline stores and a subscription-based model.
In August 2017, it got government approval to retail food products manufactured in India.

About the business

Bigbasket operates through two entities: Supermarket Groceries (wholesale sourcing) sells to Innovative Retail (consumer-facing portal and last-mile delivery).
It is an online grocery delivery platform in India.

What happens next

Bigbasket is looking to raise about $500 million to compete with Grofers, Flipkart, and Amazon.
It plans to expand into offline stores and a subscription-based model.
It is negotiating to acquire micro-delivery platforms RainCan and SuprDaily.

Investors

Alibaba (lead) — Alibaba led Bigbasket's Series E round of $300 million in February 2018.

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