BigBasket’s B2C arm’s revenue surpasses Rs 7,000 crore in FY22, while losses more than quadrupled

• ByStartupStory     |    July 16, 2022

In May of last year, Tata Digital purchased majority ownership in online grocery company, BigBasket for $1.8 billion. This was the renowned group’s greatest acquisition in the startup arena, and it is critical to Tata’s digital objectives. The Bengaluru-based company had modest growth (17 %) in its consumer-facing division, but its losses increased fourfold during the fiscal year ended March 2022.

Groceries & household products accounted for 97 percent of BigBasket’s (B2C) total operating profit, which increased 14 percent to ₹ 6,882 crores in FY22 from Rs 6,037 crore the previous fiscal year (FY21). The Hari Menon-led firm also generates money from adverts placed on its website and mobile app, which accounted for 2.4 percent of operating revenue or approximately Rs 173.2 crore in FY22. In FY21, however, this revenue remained zero. In FY22, license payments, membership fees, and trash sales all increased by 50% to Rs 43.4 crore.

Employee benefits were the company’s second-largest expense, accounting for 9.3 % of costs. These costs increased by 3.1X to Rs 739.2 crore in FY22, from Rs 236.70 crore the previous fiscal year (FY21). This expenditure also includes a cash-settled share-based payment of Rs 191.17 crore. The cost of transportation & subcontractors costs increased 42.7 percent and 267.7 percent, respectively, to Rs 454.4 crore and Rs 117.20 crore as the size increased.

While the B2C branch has already surpassed Rs 7,000 crore in FY22, the merged firm is expected to enjoy a significant increase in overall revenue in the current fiscal year. Its B2B subsidiary has yet to report FY22 results. That would be consistent with the increased objectives since Tata’s arrival. As seen by the increase in ad spending. However, it is now that improved storage and inventory management will be important, areas where a multinational like the Tata group can truly bring value. With former competitors such as Zomato-owned Blinkit, Zepto, Swiggy Instamart, and Dunzo crashing and burning in the rapid delivery race, BigBasket is poised for a breakout year shortly.

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