Case Study Online Grocery

BigBasket is India’s biggest online store for grocery shopping. It was founded in 2011 by a group of people named  Mr. V S Sudhakar, Mr. Hari Menon, Mr. Vipul Parekh, Mr. Abhinay Choudhari and Mr. V S Ramesh. BigBasket currently operates from Banglore, Mumbai, and Hyderabad and providing their services in 22 different cities in India. With more than 1800 grocery products and 1000 brands featuring on BigBasket.


Future of Online Grocery Market In India:

The grocery retail market in India is growing at 10% CAGR(Compound annual growth rate) which is currently about the size of 400 Billion. Out of which online grocery accounts to only 0.1% of it. The Online grocery market is expected to grow to 10 billion dollars in next 4 years and is likely to be concentrated in urban areas of the country.

History Behind Bigbasket:

The founders of BigBasket first time got together is 1999 and started one of the first online business in India with the name of fabmart. As a part of fabmart they started online grocery business as This business did exceedingly well in the market and company went to set up various physical supermarkets in South India. In 2006 FabMart was acquired by Aditya Birla Group and renamed the brand to More Supermarket. However, the same team got back in 2011 and launched BigBasket.

Business Model:

Today BigBasket is India’s biggest and most used online grocery store in India. They deliver 35000 orders per day with the average price of the order is 1500. BigBasket has products of their own and allows other companies to showcase their product on the portal. With more than 40% of orders coming from their own brands and remaining on other brands. BigBasket operates at the margin of 35% on the sale of their own product and 25% on the sale of third party products.


BigBasket highest fund raising was 150 million dollars in March 2016 led by Abraaj Capital in its Series D of funding. Some of the other investors are Bessemer Ventures, Helion, Zodius and existing investors who participated including Ascent Capital, Lion Rock Capital and Ganesh Krishnan and Meena Ganesh.

Recently BigBasket has raised 45 crores from Trifecta Capital which takes the complete tally of funds raised to 290 million dollars in its 8 series of funding from 11 investors.

Customer Service:

One of the biggest factors in BigBasket’s success is exceptional customer focus. The company offers same day delivery with in the city with more than 99% on time delivery and 99.5% of order fulfillment rate.

BigBasket’s return policy is also very simple and they have a policy of no questions asked to the customer while returning. All of these things have built a loyal customer base and excellent customer feedback.

Competition in E-Grocery Market:

The online grocery market has grown big time in India since it was born. With new player adding up to the market and many of the big offline supermarket going online everyone has to keep up their game to retain the existing customers and to attract new ones. One of the big name in online grocery market and one of the biggest competitors for Bigbasket is “Grofers”. Grofer right now is operating in 17 cities which is one less than BigBasket was launched in 2013 which is two years after BigBasket. Grofer has also been investors favorite and raised around 150 million dollars in last 4 years.

Other Key players in the market are Pepper Tap and Zopnow and there is new big entrant Amazon. Amazon is the biggest name in e-commerce and has come to e-grocery market. The company started its operation in December 2016 although we don’t have any official data the company was able to attract many customers due to its name in the E-commerce market.

Marketing and Branding:

Although BigBasket is purely internet based company, BigBasket chose biggest Bollywood star Shahrukh Khan as their brand ambassador. With series of Tv commercials and billboard advertising featuring Shahrukh Khan, BigBasket has become a popular name among online grocery buyers.


Vishal Ravish

Hi, I am Vishal, I am a writer who is always up for a challenge. A proofreader with an eagle eye for errors. I have more than three years of experience in content marketing. Contact me at

About Bigbasket with 18000+ products and 1000+ brands listed on their catalogue is known to be India’s largest online food and grocery store. It offers a wide range of options in every category to provide you with the best quality products at the lowest prices which include – fresh Rice and Dal, Fruits and Vegetables, Spices and Seasoning’s, Packaged products, Beverages, Personal care products, Meats, and many more.

As of now, BigBasket is a purely internet based company .

How BigBasket started?

It all began in 1999, when Hari Menon along with five of his friends- VS Sudhakar, Vipul Parekh, Abhinay Choudhari and V S Ramesh launched their online retail website called ‘Fabmart’. Even though they did manage to get some traction but since their idea was way ahead of its time, they could not shake the masses.

They decided to start their online business again and focused all the energies on ‘Fabmall’, their physical retail chain of grocery stores. They also merged this chain with another grocery retail chain called – ‘Trinethra’. Within a period of seven years they expanded their business to 200 stores across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. At that point of time they decided to sell their business to Aditya Birla Group but Krishnan Ganesh an entrepreneur concluded to go ahead with it. And finally in December 2011, they launched!

They failed to get some traction as their idea was way ahead of its time, so they could not work for the masses.

That was the time when they all decided to put the online business on the backseat and focus totally on ‘Fabmall’ with all their energy. Fabmall was their physical retail chain of grocery stores. They too merged this chain with another grocery retail chain known as ‘Trinethra’.

Implementing many strategies and with hard work, in a matter of seven years, they succeeded to expand their business to 200 stores across Andhra Pradesh, Tamil Nadu, Karnataka and Kerala. Around the same time, they also decided to sell-off the business to Aditya Birla Group.

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Funding Received

Soon after their launch, they received their first funding of $10million from ChrysCapital co-founder Raj Kondur and Ascent Capital.

There were 15 funding rounds of more than $100 million in the whole year of 2014. So far this year, BigBasket has raised $150 million in fresh round of funding led by UAE’s Abraaj Group to expand its services into smaller cities. Existing investors Bessemer Venture Partners and Helion Advisors along with International Finance Corp and Sands Capital also participated in the round.

Business Model

When BigBasket started its operations, it adopted the ‘just-in-time model’ means  they were purchased-to-order. In this model, the delivery boy directly picks up the item from the retailer, and directly delivers it to the customer.

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Current Scenario

BigBasket has been implementing a Hyper-local strategy, wherein, it has joined hands with more than 1,800 neighbourhood grocery stores across India to deliver goods within an hour.

Looking for the current scenario – BigBasket now processes almost 20,000 orders a day, with the involvement of 2000 team members.

Earlier they had acquired a hyper-local delivery start-up ‘Deliver’, to further strengthen its delivery service. Although, the company still functions as an independent firm, but the co-founders of Deliver have also been included in the management team of BigBasket.

This acquisition has helped BigBasket in their Express Delivery model, to delivery groceries in one hour.

Moving on, around the mid of 2015, BigBasket also roped in Bollywood actor – ‘Shah Rukh Khan’ as their brand ambassador, for an undisclosed sum; following which, they also launched a high volume television, digital and print media campaign as well.

They are now operational in 20 cities which include six metros, and are in plan to expand to 50 more tier two cities soon. They will also be opening 8 large warehouses in metro cities.

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