Bigbasket targets IPO in next 3 years

Eyes $1 billion in top line in FY21

                  BigBasket is an online food and grocery store that delivers personal and household needs right to customers' doorstep. Bigbasket offers groceries and food supplies in various categories such as fruits & vegetables, food grains, oil, masalas, bakery items, beverages, branded foods, personal care products, household supplies, eggs, meat, fish, etc.The company believes in being smart, quick, and efficient making life as leisurely as possible.Customers can browse through the vast range of products at bigbasket.com, order, and get them to be delivered at the customers' own convenient time slot. The company hand picks each and every product, putting it through a safety packaging process, and delivering to customers' home.BigBasket was launched on 2011 and is headquartered in Bangalore, India.

                        Online grocery firm Bigbasket aims to go for an initial public offering (IPO) BY 2023 by when it strives to have Ebitda (earnings before interest, taxes, depreciation, and amortisation) positive financials. Ebitdais an important parameter as it depicts the health of a business and whether it is able to generate cash after meeting its operational expenses.

                 Hari Menon, CEO and co-founder of Bigbasket said”contribution margin-positive”by July.Bigbasket can be able to manage all costs(expect corporate costs)above the line marketing expenses that incured on account of advertisements.Menon told to Business Standard “From contribution margin-positive, we intend to become Ebitda-positive and should achieve that between FY22 and FY23”.Bigbasket expects to close the current financial year(FY20) with a top line of rs 5,000 crore.In FY22, it hopes to hit the billion dollar markwith revenue of rs7,000crores

                       In abid to achieve profitability, Bigbasket has decided not to expand into newer cilites, and will instead focus on existing markets.Bigbasket is already serving cities like kanpur from its Lucknow base, Chandigart from Ludhinia, Anand from Baroda andGurur from,Vijayawada. In terms of product, it is still investment mode in BB Daily-milk subscription business launched 7-8 months ago.With an average order size of arround rs 100, BB Daily is nowwhere close to the core bigbasket grocery bisiness,where the average order value stands at rs 1,500.Howerer, IT holds immense potential in terms of volume, said the company.
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