Post on Medial

Contrarian take: Tata’s Bigbasket and not Zepto is India’s q-com dark horse 🙌🙌 And I have five reasons why. Let’s dive into some crazy stuff! .. One 👇 The Tata Group company had been reported to have just a 5% market share a few months back. -> And now, UBS has estimated its market share to be as high as 15%! -> That’s an insanely rapid scale-up in a way much faster expanding market Thus, it’s a massive feat! .. Two 👇 Back in January, The Arc reported that it gets 30% of its sales from q-com unit BBNow. -> Fast forward, the company now gets half its business from BBNow -> And in a matter of months, this will likely be 2/3rd of the total business! This makes for a big bright shift. Yet somehow, we hardly ever talk of it when it think of quick commerce. .. Three 👇 And it’s a new business line. It hardly had any brand re-call in the segment when IPL was happening months ago. Back then, they had rolled in Virat Kohli for a popular ad on reels/shorts. And since then, they have expanded crazily. -> It now has ~500 dark stores. That’s as many as Swiggy Instamart and more than Zepto -> And, it has set these up in clusters, with each cluster also being supported by one of its ~60 warehouses -> Driving on this backbone, it has already closed in on Swiggy Instamart in a matter of months and is rapidly scaling up That’s quite a magnum feat! .. Four 👇 Now also consider the fact that: -> Its slotted delivery and BBDaily (scheduled morning deliveries) are both growing and profitable businesses -> Q-com is the only unprofitable unit, and here too the company is targeting a massive surprise soon How do we know that? The founder (Hari Menon) recently shared with the media that they’ll be overall profitable in 6-8 months. .. Five 👇 On the profitability front, the company also gets a big support from its private labels unit. It was reported a few months back that Bigbasket gets ~35% of revenues from PLs, driving higher margins. The company is taking that higher, to stabilise at the 40-45% mark. For this, it is launching more and more products and own brands. Like, a few weeks back it launched a new brand called Precia in a collab with celebrity chef Sanjeev Kapoor. .. Thus, my not-so-common take: Bigbasket is the dark horse in the q-com business 🚀🚀 And a year down, the masses may take it way more seriously, as they talk about Blinkit and Zepto today. What do you think?