BigBasket sees revenue increase 17% in FY22 but losses quadruple
Fast moving consumer goods retailer BigBasket’s operator Innovative Retail Concepts reported a 17% increase in its revenue in the 2022 financial year but its losses also grew fourfold during the fiscal.
BigBasket’s revenue totalled Rs 7,098 crore in the 2022 financial year with losses rising to Rs 812 crore, according to its regulatory filings accessed on Tofler by Indian Retailer. The business’ expenses increased by 26% year-on-year to total Rs 7,931 crore.
The main reason for this was an increase in the prices of goods as BigBasket runs on an inventory-led model. Expenses on goods rose by 7% to total Rs 5,807 crore, according to Innovative Retail Concepts’ filings.
BigBasket managed to add to its revenue by generating Rs 173 crore in advertisement revenue, which was a new stream for the business. BigBasket sold banner slots on the homepage and search page of its shopping app for businesses to place adverts on.
Innovative Retail Concepts is a subsidiary of business-to-business company Supermarket Groceries Private Limited and part of the Tata group. The company is eyeing $1.3 billion in revenue and is being given an internal valuation by Tata Digital of between $4 billion and $5 billion.
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