BigBasket is India’s largest online-only grocery story, selling items from fresh produce and meats to dry goods. Since its founding in Bangalore in 2011, BigBasket has expanded its geographic scope of operations to 25 areas across India. BigBasket’s value proposition is enabled by its vertically integrated model. This has the potential to result in lower prices, fresh and higher quality products, greater choice, and, the convenience of at-home delivery.
BigBasket is seeking to disrupt the grocery industry by integrating important aspects of the supply chain and moving operations online.
The founding management team has 15 years of entrepreneurial experience together, building one of the first ecommerce businesses in India and the country’s largest offline grocery store chain. From this experience they conceived a new way to empower consumers to purchase groceries.
The company’s business model seeks to address two historically fragmented consumer purchase types: “stock-up” purchases (i.e., large basket purchases) and “top-up” purchases (i.e., smaller intermediate goods for immediate consumption).
Farmer Sourced: Fragility, perishability, and inconsistent product quality make the provision of fresh products challenging in both online and traditional store formats. BigBasket seeks to overcome these challenges by sourcing many of its products directly from farmers.
Network of Warehouses: The limited product choices available in traditional markets and grocery stores tend to force consumers to shop at multiple locations to obtain their entire basket. BigBasket’s network of large “stock-up” and small “top-up” fulfillment warehouses allows the company to offer an extensive selection of products, thereby enabling consumers to purchase all their products in one transaction.
Delivery Value: The mere act of grocery shopping can require extensive planning. The act may entail lengthy travel time due to a lack of transportation infrastructure and high traffic congestion. BigBasket’s free delivery seeks to eliminate this inconvenience, by ensuring customers receive groceries at their location at a predetermined time of day.