BigBasket plans to open 900 dark stores by 2025-end: Vipul Parekh

Parekh also added that when compared to competition, the firm's cash burn is the lowest. However, he did not share the exact figure

Tata Digital-owned grocery platform BigBasket, which has fully pivoted to quick commerce (qcom), plans to scale up to 900 dark stores by the end of this year from the current 700, as it doubles down on the fast-growing segment, said Vipul Parekh, cofounder and chief marketing officer.

 

“We have close to 700 dark stores across Tier-I and Tier-II cities and will probably add another 200 before year-end,” Parekh told Business Standard.

 

On the company’s growth outlook, Parekh said, “We are going through a period of intense growth and plan to grow revenue by about 60 per cent, thanks to the qcom push. We are also building larger dark stores and expanding into multiple categories.”

 

He added that compared to rivals, the firm’s cash burn is the lowest, though he did not disclose figures.

 

For 2024-25 (FY25), BigBasket reported revenue of ₹7,673 crore, down 3 per cent from ₹7,885 crore in 2023-24 (FY24). Losses, however, widened to ₹1,851 crore in FY25 from ₹1,267 crore in FY24.

 

On the profitability of existing dark stores, Parekh said the top 25 per cent are profitable, and the aim is to have over 50 per cent profitable by December. “Currently, almost 80 per cent of revenue comes from larger dark stores, over 5,000 square feet. As a network, we expect to be operationally profitable — contribution margin positive — by March next year,” he said.

 

BigBasket is present in 61 cities and is setting ambitious expansion targets, though Parekh stressed that growth will be selective. “We will expand, but we’re being careful because some cities are still small. While there is demand, it may not add meaningfully, and managing a large portfolio of smaller cities is difficult,” he said.

 

“The commerce is large in the top 10 Tier-I cities. The next 25–30 Tier-II cities have high potential, and we are present there. But the next 70–100 Tier-II cities are low- to mid-potential, and it will take time for those markets to mature. These are the cities where we are being selective,” he added. 

 

BigBasket has a customer base of 30 million, which is growing by about 1 million every month, according to Parekh.

 

On stock-keeping units (SKUs), Parekh said the company is expanding its range to strengthen offerings. “The entire selection strategy is driven by velocity and penetration. We carry 13,000–15,000 SKUs in grocery for Tier-I customers, which generate the highest revenue and units sold. We want around 25,000 SKUs by December in Tier-I cities, and by March next year in Tier-II cities,” he said.

 

Non-grocery categories will also undergo major expansion over the next six to 12 months. BigBasket currently sells electronics in five cities, raising its average order value (AOV). In these cities, about 80 per cent of AOV comes from grocery, while 20 per cent comes from non-grocery. “In electronics, customers first bought accessories like chargers and earpods. Now they’re buying mobile phones and kitchen appliances,” Parekh said.

 

Compared to other qcom players, Parekh claimed BigBasket’s AOV is among the highest. “Our AOV is the highest, primarily because of the customers we attract — they buy larger order sizes — and because we carry a much wider assortment. Our focus is on keeping order values high, which is critical for unit economics and profitability,” he said.

 

On festival season demand, Parekh said, “Qcom has become a sort of festival channel for customers now, so selection during festivals is very important. For Diwali, we’ll sell gold coins, ethnicwear, sweets, gift boxes, etc. We’re planning revenue for Diwali to be about 10x higher than last year.”