Big Basket aims to turn profitable in 8 months
Once the newly launched ‘BB Now’ vertical starts making money, says Hari Menon, co-founder and chief executive
Mumbai: The Tata group-owned online grocer Big Basket is eyeing to come out with an initial public offering in 2025 after turning profitable, a top official said on Tuesday.
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 here.
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.”
He hinted that the issue will include both primary and secondary share sales, but did not share any more details.
The business requires capital for ongoing investments which be raised from the Tata Group in the run-up to the IPO, he said, adding that a bulk of the investments are in technology, marketing and people.
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. On profitability, 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, Menon said, adding that the older business lines including slotted and BB Daily are in the black. He said it is easier for the new business to turn profitable because the back end is common across the three business lines.
