The Financial Analysis of Big Basket: A Detailed Discussion 

Gone are the days when we had to go to the market, which is far away from home, to purchase vegetables and any other items for our home. With the advancement of technology, you can just order groceries with just one click on your smartphone.

Big Basket is the genie to our problems. It is an Indian online grocery delivery service that has gained prominence as the country’s largest online grocer. It was founded in the year 2011, and it has revolutionized the way people purchase groceries as well as other household essentials in India. 

It is known to have significant growth in the e-commerce sector, serving millions of customers across the country. They provide a variety of grocery and other household items, which gives the customer whatever they want.

In this article, we’ll analyze Big Basket financially and briefly discuss Big Basket vendor registration. 

Let’s get started! 

What Do You Mean by Financial Analysis? 

Before proceeding with the article, let’s first define financial analysis. Financial analysis refers to the systematic process of evaluating a company’s financial health and performance by reviewing its last financial statements, ratios, and other relevant data.

This is highly beneficial for stakeholders like investors, creditors, and management so that they make necessary decisions for the company. 

Revenue and Growth of Big Basket

In FY22, Big Basket reported a revenue increase of 17%, reaching Rs 7,119 crore, which is approximately $957 million. This growth increased with the rise of demand for online grocery shopping in India, especially during the COVID-19 Pandemic.

But the company faced significant losses too in the same year. It widened substantially, reaching Rs 812 crore, which is approximately $109 million. That is four times higher than the previous year. 

Business Model of Big Basket

Big Basket is known for its unique business model. It is primarily an online grocery retailer that connects customers to a wide range of grocery and household products through its website and mobile application.

So, it maintains an inventory of its own, keeping the products in warehouses and stores and ensuring a cast selection of items for customers. They even offer doorstep delivery, which allows customers to order online at their own convenience.

They even provide subscription services like “Big Basket Plus” for added benefits like discounts, free delivery options, etc. 

Their main revenue comes from product sales, delivery charges, and subscription fees. They have even expanded their services to include fresh produce, dairy, and various other services that are beyond groceries.

The biggest challenges they face are operational costs, timely deliveries, and competing against the new competitors in the market. 

SWOT Analysis 

To completely understand Big Basket’s financial standing, let’s also do a SWOT analysis of the company. SWOT analysis is a valuable tool for strategic planning, helping businesses and individuals make informed decisions.

By doing this analysis, we can identify a company’s or an individual’s strengths, weaknesses, opportunities, and threats.

So, let’s jump right into it! 

Strengths

• It has a strong brand presence in the Indian online grocery market and is definitely the first name that the consumer thinks of while purchasing online groceries. 
• It has a variety of products ranging from groceries, dairy products, medicines, and even beauty products. It has every product that the consumer needs at home. 
• It has an extensive delivery network, which ensures timely deliveries to customers. 

Weaknesses 

• The competition is increasing every single day, especially in the online grocery market in India, with several players fighting for market share. 
• The company even faces challenges in achieving profitability due to heavy investments in growth. 
• Making sure of timely deliveries, especially in congested urban areas, can be a huge logistical challenge. 
• The maintenance of warehouses and delivery infrastructure can be super expensive. 

Opportunities 

• When the company expands into new regions and markets of the country, there is significant potential for growth in the market, which will help it gain more new customers. 
• The introduction of new products in the market, like organic and gourmet foods, can attract the younger and fitness freak audience. 
• Partnerships with local producers and suppliers can enhance the product offerings. 

Threats 

• Many e-commerce giants started before Big Basket, so rivalry with them poses a constant threat. 
• Changes in regulations related to e-commerce and food safety can impact operations. 
• There are so many external factors, like natural disasters and pandemics, that can totally disrupt the supply chain. 

Conclusion 

The world has become such a comfortable place to live in as you get all your work done just by sitting at your home. Delivery platforms have revolutionized society and made everyone’s life easy.

So, the next time your mom asks to purchase groceries from the market, all you have to do is install the big basket application and teach her how to order. They have a user-friendly interface, making it easy for everyone to order whatever they want. 

In this article, we discussed everything that is required to financially analyze a big basket.

It includes getting to know its past revenue, profits, and losses and even doing a SWOT analysis of the company. I hope this article was helpful to you.