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Jayant Mundhra
Ā ā¢Ā
Dexter Capital AdvisorsĀ ā¢Ā 2m
To counter the negative narrative in the news, BigBasket probably shared content that only made things worse šš A few days back, it was widely reported that Tata Group, unhappy with its business performance, has refused to provide BigBasket with more funds for growth and has asked it to find external investors (in pic). Two days after that, there was common reporting across all publications, as well as many newsletters that had some statements from BigBasketās CEO and founder Hari Menon (in pic). And these were majorly three things. 1> Q-com now makes for 80% of the companyās revenue 2> Set to double cities and topline YoY by end of FY26 3> To go for an IPO in 18-24 months .. Now, compare that with what the Hari Menon had shared with the Hindu Businessline in August- āThe whole company would turn profitable in 6-8 months, and go for an IPO in 2025.ā Itās clear that the milestones set for a 2025 IPO have not been achieved and are far far away, indicating a lot has gone in an undesired trajectory in the last 6 months, driving the decision to postpone the IPO to late 2026 or the first half of 2027. And, the media has somehow forgotten what the company and its founder told the press just six months ago. .. Meanwhile, I am not surprised about what may have changed the plans. The intensity of quick commerce increased suddenly after Zepto raised its last round of $340mn. Since then, Blinkit, Zepto, and Instamart have combined to open 1k+ new dark stores. Coverage beyond the major markets has also increased. For instance, take Swiggy Instamartās example. It was live in 27 cities in March and 43 around the time Zepto raised its last round. In four months, the coverage has almost doubled to 85 cities. And in midst of this, Swiggy itself was taken by a surprise, forcing it to revise its DRHP pre-filing to increase the allocation of money to be raised towards quick commerce investments. This is where BigBasket was unprepared, with its services live in just 35 cities. ..
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