As 10-minute delivery game has become inescapable for ecommerce players, Tata-owned BigBasket is rewriting its rules to compete with quick commerce giants like Blinkit, Instamart, and Zepto. The platform has come up with a “multi-category quick commerce (MC/QC)” model that could become the backbone for Tata’s digital push.
Under this, the company will use its existing dark stores, warehouses, and last-mile fleet to allow fast deliveries of Tata-owned brands like Croma, Titan, 1mg, Qmin, and others, as per MoneyControl reports. All products will be available under one platform.
In addition, Croma and 1mg outlets are repurposed to function as dark stores for BigBasket. This strategy will allow the company to tap into hyperlocal presence and logistical muscle of its Tata Group partners as they have deep understanding of micro-markets across multiple product categories, the report said.
iPhones, Grocery, Garments & More
Seshu Kumar Tirumala, Chief Buying and Merchandising Officer at BigBasket has told the news publication that the MC/QC model is already live in some parts of the country. Currently, the company is operating with MC/Qc model across 40 locations in Bengaluru, Chennai, and Hyderabad.
Last year, the pilot project was launched with Croma for the iPhone 16 delivery on BB Now. According to him, electronics sales contribute nearly 8% to BigBasket’s overall sales, the report added.
After electronics, the company also collaborated with Jockey for innerwear and basic apparel under the fashion category. These two categories were followed by the introduction of footwear. And for pharmacy products, it partnered with Tata 1mg to deliver medicines in 10-15 minutes.
Besides these product lines, BigBasket also entered into the food delivery segment and the company tied up with Tata’s Qmin and Starbucks.
What’s New in BigBasket’s Strategy?
Unlike its competitors operating multiple apps, BigBasket will follow a “unified” app approach. This means every product – be its electronics, medicines, or clothing – will be available on BigBasket’s primary platform, the MoneyControl report said.
Additionally, the company will also not hold inventory for every category, rather the brands manage their own stocks and compliance. BigBasket will only focus on last-mile logistics and delivery.
This strategic shift comes at a critical juncture for Tata Digital, which oversees BigBasket, 1mg, and Tata Cliq. Some media reports also stated that Tata Sons is likely to infuse $400 million into Tata Digital, sourced from its TCS dividends.
Despite investments exceeding $2 billion since 2021, Tata’s vision of a full-fledged super app has struggled to gain momentum.
Meanwhile, competitors like Blinkit, Zepto, Swiggy Instamart, Flipkart Minutes, and Amazon Now are aggressively building out dark store infrastructure to expand their reach and cut delivery times. Blinkit is even pivoting to a more investory-led model, with plans to hold and sell high-margin SKUs directly.
BigBasket’s IPO Plans
Big Basket is eyeing to come out with an initial public offering in 2025 after turning profitable. The Bengaluru-based company, a part of Tata Digital, will turn profitable in another 6-8 months, once the newly launched 'BB Now' vertical starts making money, its co-founder and chief executive Hari Menon told reporters earlier.
When asked about plans for an IPO, he said, "We will probably have it in 2025. But we are leaving it to the Tatas, there cannot be anybody better to guide us and advise us on that."
The company is targeting sales of up to ₹150 crore from the line christened "Precia" by 2026, and will be focusing on marketing the products, which also include items like momos and desserts, he added.
Founded in 2011 by Parekh, VS Sudhakar, Hari Menon, VS Ramesh, and Abhinay Choudhari, BigBasket was started as an online grocery platform but it fully transitioned into quick commerce model with delivering orders within 15-30 minutes last year.
The company was acquired by Tata Digital in May 2021, which purchased around 64% stake.
