BigBasket B2B Arm’s Net Loss Jumps 71% YoY To INR 1,785.4 Cr In FY23

BigBasket’s B2B entity Supermarket Grocery Supplies Private Limited reported over 71% widened consolidated net loss of INR 1,785.4 Cr in the financial year 2022-23 (FY23), hurt by a surge in expenses.

The B2B arm of BigBasket had reported a net loss of INR 1,040.6 Cr in FY22.

The online grocery retailer’s operating revenue increased 11.4% to INR 9,468.5 Cr in the year under review from INR 8,497.7 Cr in FY22. As a grocery retailer, the startup earns a majority of its revenue from sales of products.

The B2B entity’s revenue from sales of its grocery and other household products rose to INR 9,193.2 Cr in FY23 from INR 8,233.6 Cr in the prior fiscal.

On the other hand, its revenue from sales of services stood at INR 255 Cr in FY23 as against 245.4 Cr in FY22.

Meanwhile, as per BigBasket’s regulatory filing with the Ministry of Corporate Affairs, it clocked a gross revenue of INR 9,295.6 Cr in FY23. However, discount and rebate offers cost the company INR 102.4 Cr during the period. The cost of discount and rebate offers grew 13.5% year-on-year (YoY).

Including interest income and gains from current investment, BigBasket’s B2B arm reported an 11% YoY rise in total income to INR 9,499.3 Cr.

On the expenses front, Tata-backed BigBasket’s B2B arm saw a 1.2X jump in its total expenses to INR 11,284.7 Cr in FY23 from INR 9,596.7 Cr in the previous year. In that, purchases of stock-in-trade were the single biggest contributor, accounting for 71% of the total expenses.

The company spent INR 8,016.1 Cr for the purchases of stock-in-trade in FY23, up from INR 7,219.6 Cr in the prior year.

Meanwhile, employee benefit expenses jumped to INR 1,060.8 Cr during the year under review from INR 915.2 Cr in FY22, with salaries and wages contributing INR 795.1 Cr to it.

However, the company’s total employee share-based payment declined over 34% YoY to INR 165.8 Cr in FY23.

Advertising promotional expenses continued to rise, zooming to INR 385.1 Cr from INR 200.5 Cr in FY22. Transportation distribution expenses also surged almost 64% YoY to INR 726.1 Cr in the year under review.

Losses from change in the inventory of finished goods, work-in-progress, and stock-in-trade widened to INR 79.3 Cr in FY23 from INR 57.9 Cr the prior year.

Supermarket Grocery Supplies’ subsidiaries include Innovative Retail Concepts Private Limited (the B2C arm of BigBasket), Savis Retail Private Limited, Delyver Retail Network Private Limited, and Dailyninja Delivery Services Private Limited.

Meanwhile, BigBasket’s B2C arm reported a net loss of INR 1,535.2 Cr in FY23, up 89% YoY, while its operating revenue saw a mere 4.8% rise YoY to INR 7,434.4 Cr in the year.

Supermarket Grocery Supplies infused another INR 350 Cr in Innovative Retail in June 2022.