Tata Sons, the parent company of BigBasket, isn’t happy with its online grocery delivery platform which is lagging behind in the quick commerce race, according to a report published by The Economic Times. Calling it a “strategic misstep”, the Tata Group has clearly expressed its displeasure over ‘sluggish’ response to the rapid rise of Zomato, Swiggy, and Zepto.
Tata Sons indicated that the e-grocery unit should seek external investors for nearly $1 billion to fight against the market giants, the report said, adding that bankers also held meetings on the plan recently regarding the same.
However, the group opted not to lead the estimated $1 billion funding round and instead, engaged in discussions with BigBasket’s management to bring in a financial investor, it added.
BigBasket Eyes Profitability, IPO
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, which competes with similar offerings from Amazon and Flipkart, is targeting to close FY24 with a revenue growth of 30-35 per cent over the previous fiscal, with a topline of about Rs 12,000 crore, Menon said.
He said the enterprise will turn profitable once the newly launched BB Now under which it delivers products in 10 minutes turns profitable, which is in the next 6-8 months. “T he older business lines including slotted and BB Daily are in the black.”
The company is targeting sales of up to Rs 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.
