Innovative Retail’s operating revenue rose a mere 4.8% to INR 7,434.4 Cr in FY23 from INR 7,095.9 Cr in FY22
The B2C arm of BigBasket saw its total expenses jump 1.1X to INR 8,997.7 Cr in FY23 from INR 7,929.2 Cr in FY22
While its B2C arm continues to see increased losses, BigBasket’s B2B business reported over 57% YoY decline in loss at INR 177.9 Cr in FY22
Tata-owned bigbasket
’s B2C arm, Innovative Retail Concepts, reported a net loss of INR 1,535.2 Cr in the financial year 2022-23, up 89% year-on-year (YoY), on the back of rise in expenses.
The online grocery retailer’s loss stood at INR 812.7 Cr in FY22.
Innovative Retail’s operating revenue rose a mere 4.8% to INR 7,434.4 Cr in FY23 from INR 7,095.9 Cr in the previous fiscal year.
The company earns a majority of its revenue from sale of traded products. Innovative Retail earned INR 7,175.2 Cr from sale of products in FY23 as against INR 6,879.3 Cr in FY22.
On the other hand, it earned INR 240 Cr from sale of services, up 19.2% YoY. In that, BigBasket’s advertisement income stood at INR 229.5 Cr in the year under review as against INR 173.2 Cr in FY22.
BigBasket also earned INR 19 Cr from scrap sale in FY23 as against INR 15.3 Cr in the previous fiscal year.
Overall, total income, including interest income and other non-operating income, stood at INR 7,462.4 Cr in the year under review as against INR 7,116 Cr in FY22.
The online grocer’s top line continued to struggle despite the company entering the instant delivery service with BBNow in April 2022. In the quick commerce space, BigBasket competes with the likes of Swiggy, Blinkit, Zepto and Dunzo.
Meanwhile, expenses continued to surge. Total expenses increased 1.1X to INR 8,997.7 Cr in FY23 from INR 7,929.2 Cr in FY22.
The startup spent INR 6,053.4 Cr towards the purchases of stock-in-trade as against INR 5,807.3 Cr in FY22.
Employee benefits expenses jumped 1.2X to INR 915.6 Cr in FY23 from INR 739.2 Cr in FY22. Under this, salaries and wages accounted for the biggest chunk of expenses at INR 689.9 Cr.
On the other hand, advertising and promotional expenses more than doubled to INR 384.7 Cr in FY23 from INR 183.9 Cr in the prior fiscal.
Total cost of transportation also jumped 50% YoY to INR 681.6 Cr in FY23.
While its B2C arm continues to see increased losses, BigBasket’s B2B business reported over 57% YoY decline in loss at INR 177.9 Cr in FY22.
In December 2022, BigBasket raised a $200 Mn funding round from Tata Digital and other investors, reportedly hitting a valuation of $3.2 Bn. It aims to list on the bourses by 2024-25.
