Big Basket, an online supermarket owned by the Tata Group, plans to go public in 2025 after becoming profitable, the news agency PTI reported citing a top official.
The Bengaluru-based firm, which is part of Tata Digital, will become profitable in the next 6-8 months after the newly announced ‘BB Now’ vertical begins to generate revenue, according to co-founder and CEO Hari Menon.
When asked about plans for an IPO, Menon stated that they’re looking forward to the tata group’s guidance. He implied that the problem would include both main and secondary share transactions., but did not share any more details, the report said.
The company requires funds for continuous investments, which will be funded from the Tata Group in the lead-up to the IPO, he said, adding that the majority of the investments are in technology, marketing, and people.
In terms of profitability, Menon stated that the firm would become profitable if the recently introduced BB Now, which delivers items in 10 minutes, becomes profitable, which will occur within the next 6-8 months, and that the older business lines, like slotted and BB Daily, are in the black.
He stated that the new firm will find it simpler to become successful because the back end is shared by all three business lines.
At present, more than 70 per cent of its revenues originate from the slotted business, with the relatively newer ventures BB Daily (which delivers items like milk in the morning) and BB Now making up the remaining 30 per cent, according to Menon.
Currently experimenting with an offline presence in the omnichannel format, the company aims to increase the contribution of private labels to 40-45 per cent of sales in the next two years, up from the current 36 per cent.
Despite piloting offline outlets, there are no plans to sell private labels through these channels.
Furthermore, dismissing previous reports of his departure after the Tata takeover, Menon emphasised that there are no such plans.
Big Basket recently collaborated with celebrity chef Sanjeev Kapoor to launch a line of frozen foods, named “Precia,” aiming for sales of up to Rs 150 crore by 2026.
The product line includes various items like momos and desserts and Menon highlighted the focus on marketing these products.
