How Five Friends Built India’s First and Largest Online Grocery Store: BigBasket

When bigbasket entered the Indian e-commerce market in late 2011, it came up with an idea to bring the vast and essential market of groceries online. This vision turned out to be a masterstroke, making BigBasket India's first and one of the largest e-grocery companies. Even with new-age startups disrupting the sector, BigBasket continues to adapt and thrive, eyeing an IPO in 2025.

Present in over 300 cities across India, BigBasket handles approximately 15 million orders per month. Its growth trajectory remains impressive, with operating revenue crossing Rs. 10,000 crore in FY24, and the company is on track to achieve profitability soon.

In spite of changing market dynamics and cutthroat competition from Quick Commerce startups, BigBasket has managed to stay relevant in India’s online grocery market. Let’s dive into the story of how they got here.

Five Friends and Their First (Ad)venture

BigBasket was founded in October 2011 by five friends: Hari Menon , Vipul Parekh , V.S. Sudhakar, Abhinay Choudhary, and V.S. Ramesh. This was not their first business venture together; BigBasket was built upon their earlier project.

Their journey began in September 1999 when the five friends, along with Vaitheeswaran K , launched their first venture—an e-commerce website called Fabmart.com, which sold products such as music cassettes and toys. However, it was too early for online shopping in India due to limited internet penetration and few payment options. As a result, they pivoted Fabmart into a brick-and-mortar grocery chain called Fabmall, which quickly gained success.

The Birth of BigBasket

The success of Fabmall led to its acquisition by a larger conglomerate in 2006. While the team benefited from this sale, they reunited five years later with a new vision: to re-enter the e-commerce market, this time focusing on a grocery delivery service.

Although groceries represent the largest retail segment in India, they had largely been untouched by e-commerce due to the complexities of the supply chain. However, the team’s experience at Fabmall provided them with invaluable insights into the grocery supply network. With a more developed internet ecosystem and the necessary backend infrastructure in place, BigBasket was established, destined to become India’s leading online grocery provider.

How BigBasket Evolved Amid Evolving Challenges: Strategies and Plans

Since its founding in Bangalore in 2011, BigBasket has grown to establish a presence across India, providing grocery delivery services in hundreds of cities. The company is currently owned by the Tata Group, which acquired a majority stake of 64% in 2020.

Despite facing fierce competition from quick commerce startups in recent years, BigBasket has demonstrated resilience by adapting to market changes with a forward-thinking vision and strategic business decisions. Here’s how:

1. Robust Supply Chain?

One of BigBasket's main factors for growth has been its strategic supply chain. The company employs a hybrid model that combines an inventory-based approach, which includes setting up dark stores, with a marketplace model that involves partnering with local retailers. This flexibility allows BigBasket to serve not only metropolitan cities but also smaller towns throughout the country.

2. Offline Stores Expansion

BigBasket has expanded its offerings beyond online grocery services by launching Fresho stores in the offline retail space. The first Fresho store opened in Bangalore in 2021, providing customers with competitive prices on grocery items. By the end of fiscal year 2026, the company aims to generate Rs. 12,000 crore in sales from 800 Fresho outlets, thus diversifying its revenue streams.

3. Expanding Service Verticals

In recent years, BigBasket has expanded its offerings beyond traditional grocery delivery by introducing services like BB Daily, which delivers daily essentials, and BB Instant, featuring vending machines in select Tier-1 cities. These innovations aim to foster long-term revenue growth.

4. Pivot to Quick Commerce

With intense competition from Quick Commerce players in major cities, BigBasket launched its Quick Commerce service, BB Now, in early 2022. In just over two years, BB Now has represented more than 50% of BigBasket’s sales.

Looking ahead, BigBasket is making a bold move to fully pivot its operations to Quick Commerce. The company also plans to increase its dark store network from around 400 to 700 by the end of FY25, further enhancing its presence in this rapidly growing sector.

With a well-rounded strategy in place, BigBasket’s future remains promising. Its journey highlights the power of adaptability and innovation in navigating the ever-evolving business landscape.