BigBasket's wholesale business sees revenue jump 35%
today Jan 3, 2019
BigBasket has reported a 35 percent increase in wholesale business revenue for the 2018 financial year totalling Rs 1,606 crore ($241.4 million) and a 53 percent drop in losses.
Supermarket Grocery Supplies Private Limited, the wholesale business of BigBasket, reported a successful 2018 financial year with increased revenue and decreased losses. Although the business’ operating losses remained consistent, its overall losses decreased by 53 percent to Rs 310 crore for the 2018 financial year. As reported by ET Bureau, a main reason for this is that, in the 2017 financial year, BigBasket spent Rs 340 crore which was far more than usual.
As well as BigBasket’s business to business arm Supermarket Grocery Supplies, its business to customer segment Innovative Retail also saw its revenue increase in the 2018 financial year. Innovative Retail reported a 29 percent revenue jump to Rs 1,410 crore and six percent decrease in losses to Rs 179 crore according to regulatory filings sourced by Tofler. Supermarket Grocery Supplies sells its products to Innovative Retail which then sells them in store.
The 2018 financial year also saw BigBasket gain a new investor, China’s Alibaba. The company also raised $300 million in February last year. However, despite a strong performance from Supermarket Grocery Supplies and Innovative Retail, BigBasket’s subsidiary Delyver Retail Network’s net worth decreased in the same year. This caused BigBasket to seek impairment provision to the tune of Rs 41 crore.
BigBasket is currently expanding into the cosmetics market and aims to launch a number of brands in-store as well as pursue its own private label business in the sector.
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