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New Delhi: Tata-owned BigBasket is aiming to increase the monthly revenue of its quick commerce arm, BB Now to Rs 250 – 275 crore by March 2024, said a top executive of the company.
Talking to ETRetail on the sidelines of the E-commerce and Digital Natives Summit 2023 held in Bengaluru earlier this month, TK Balakumar, COO, BigBasket said, “We are close to doubling quick commerce arm monthly revenue. If we exit March 2024 at Rs 250-275 crore, we will be almost even-stevens in terms of contribution margin.”
BB Now closed March 2023 at a revenue of Rs 175 crore.
Balakumar highlighted that the e-grocer is focused on profitable growth for the overall business including its q-commerce arm. “Our goal is to exit this financial year with contribution margin neutral including quick commerce.”
He stated that the company has taken a conscious call of balancing between growth and profitability that includes optimising infrastructure, adapting more automation and technology, improving efficiencies, driving the productivity of the warehouse workforce, and deployment of more electric vehicle operators.
On being asked about the timeline for turning profitable, the COO said that from a contribution margin perspective in the full-service model, the company is already positive.
“We are consolidating to increase the current contribution margin from 2% to 4-5%. We’ve taken a task of going near to 4%, which is almost doubling what we exhibited last year,” he stated.
For the overall business, he shared that the company grew by 25 per cent last year and is currently operating at a 1.5 billion dollar topline.
Earlier this year, BigBasket’s B2C arm posted a 89 per cent increase in its losses for the year that ended March 2023. Its operating revenue on the other hand grew by almost 5 per cent.
Without sharing many details, Balakumar confirmed the etailer’s IPO plans and said, “We are very much in that journey and preparing very hard as a leadership team.”
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