Innovative Retail Concepts, the retail arm of BigBasket, has reported a nearly 44 percent year-on-year increase in revenue from operations at Rs 3,417.63 crore in the year to March 31, 2020.
The company’s total losses increased by about 22 percent to Rs 424.29 crore in FY20. It failed to keep a check on expenses that shot up by a little more than 40 percent y-o-y to Rs 3,842.33 crore during the year. BigBasket spent about Rs 2,729.63 crore in FY19.
Analysts at consulting firm RedSeer said that the adoption of e-grocery grew manifold amid the pandemic as many households that typically subscribed to neighborhood kirana stores moved online. There was an expected 1.5 to 1.6 times increase in households that signed up for online grocery in May 2020 compared to the beginning of the year.
Speaking at an event earlier this year, Hari Menon, Co-Founder & CEO, BigBasket, had said that the firm’s business has doubled compared to the pre-Covid levels.
“We are very clearly seeing the shift to online. We have acquired new customers by value three times, by a number of orders three times and by a number of members 2.6 times as compared to pre-Covid,” Menon had said at another summit last year.
The Bengaluru-based grocer is valued at $1.2 billion. It is reportedly close to sealing a deal with the Tata Group that will give the conglomerate a majority stake in the company.