India's largest online grocer, BigBasket is set to launch its marketplace business that will deliver orders placed with hyperlocal speciality stores like bakeries and meat shops in less than an hour. The marketplace will offer popular neighbourhood delights from bakeries, flower shops, meat speciality stores and pet outlets.
Hari Menon, CEO of Big-Basket said that no matter how much consumers shop online, 5% of their grocery is bought from speciality stores within the locality that they trust and love, for example, a cake from a favourite bakery. He further added that with this move, BigBasket plans to cover the whole grocery basket.
With the help of this business, BigBasket will handle logistics only for stores within 6-km radius. The company will launch this service in Bengaluru with roughly 400 stores and expand to other cities over the next few months.
BigBasket's average order size is Rs 1,500 and it expects a gross merchandise value of $300 million (Rs 2,000 crore) for the financial year ending March.
An Aditya Birla Group acquired brand, BigBasket is backed by Sands Capital, IFC, Helion Venture Partners, Ascent Capital, Zodius Capital and Bessemer Ventures. Founders Menon, VS Sudhakar, Vipul Parekh, VS Ramesh and Abhinay Choudhari had given grocery etailing a shot back in 2001 with Fabmall. But they soon turned that model into an offline retail store chain.