Online grocery store Bigbasket
is expecting an operational break-even
by February next year, except for above-the-line marketing and corporate spends. A complete break-even, claimed the company’s Co-Founder & Chief Executive Officer Hari Menon, is expected between 2018 and 2020.
Speaking to reporters on the sidelines of a human capital management conference by Chennai-based B-school Great Lakes Institute of Management, Menon said, “We are aiming at scaling up with profitability. We will see operational break-even, except for above-the-line marketing expenses
and corporate spends, for all eight tier-I cities.”
With a three-million customer base, the grocery portal expects this number to jump manifold to 10-15 million.
Its private label business currently contributes to around 33 per cent. It expects this to go up to 40 per cent over the next 18-24 months. While the average margin for products is 22-23 per cent, on private labels, the margin is 25-40 per cent, depending on the category.
Bigbasket, which recently announced its entry into the business-to-business market, with supply to bulk customers such as hotels and restaurants, expects the ratio between business-to-customers (retail) and the business-to-business to be at around 70:30 over a period of time.
It currently connects 1,100 farmers with around 3,000 acres. It plan to increase the connect to 3,000 farmers and 10,000 acres of agricultural land.