Alibaba-backed Supermarket Grocery Supplies, which owns and operates, unicorn digital grocery startup BigBasket has reported a 6.7 per cent jump in net losses even as total income increased 36 per cent in FY20 on a consolidated basis. The company, which competes with Grofers, JioMart, Amazon Pantry, Flipkart Supermart, and others in the digital grocery space, posted a net loss of Rs 611 crore in FY20 up from Rs 572 crore in FY19. The total income increased from Rs 2,804 crore to Rs 3,822 crore during the said period while operating income stood at Rs 3,794 crore in FY20 vis-à-vis Rs 2,754 crore in FY19. However, consolidated total expenses for BigBasket also widened 31 per cent from Rs 3,376 crore in FY19 to Rs 4,433 crore in FY20.
“The company has been incurring significant losses over the years and has raised equity from shareholders to fund its operations. Subsequent to the year-end, the company raised Rs 3,935 million (Rs 393.5 crore) from certain investors based on which along with its existing working capital level at year-end, it believes it will be able to fund its operations for the next year,” the company said in the regulatory filing sourced from the business intelligence platform Tofler.
As of March 31, 2020, BigBasket had working capital of Rs 14,633.52 million (Rs 1,463 crore), including investments in mutual funds of Rs 380.57 million (Rs 38 crore), cash and cash equivalents of Rs. 264.38 million (Rs 26.4 crore) and other bank balances of Rs 43.28 million (Rs 4.32 crore), the filing read. The consolidated business, as per the filing, included last-mile logistics company Delyver Retail which it acquired in 2015, smart vending machines operator Savis Retail acquired in 2018, and micro delivery startup DailyNinja acquired in 2020 to boost its subscription delivery business.
BigBasket’s standalone performance reported an increase in net losses from Rs 562 crore in FY19 to Rs 593 crore in FY20 while total income grew from Rs 2,802 crore to Rs 3,818 crore. On the other hand, expenses jumped from Rs 3,365 crore to Rs 4,411 crore that included purchases of stock in trade worth Rs 3,545 crore, Rs 343 crore in employee benefit expenses, Rs 148 crore in ad promotional expenses, etc. The company is looking for a public listing in India in the coming years. “The fact whether companies want to get listed in India or overseas is being widely debated, but BigBasket would want to go for an IPO in India,” the company’s co-founder & CEO Hari Menon had said at the Prarambh Start-up India International Summit last month. The company is reportedly in talks with the Tata Group for the majority stake sale.