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BigBasket eyes Rs 500 cr revenues from its B2B food service business

By Chanda Kumar | 3 | April 14, 2017

The leading online grocery store plans to achieve INR 500 crore exit rate by FY 2018-end with the new platform and services. The company would be investing Rs 50 crores over the next 12 months as it expands the business nationally.

Leading online supermarket in the country, bigbasket announced that it clocked Rs 100 crore annualised turnover by March 2017 from its B2B food service business with its offerings of meats, private labels, staples, F&V and gourmet products to the HoReCa (Hotels, Restaurants and Caterers) segment. The company would be investing Rs 50 crores over the next 12 months as it expands the business nationally. The HoReCa business was started in June 2016 and it has already tasted early success in this sector by becoming the preferred supplier of fruits and vegetables for some of the finest hotel chains, multi-cuisine restaurants, and caterers. Speaking on the expansion plans, Abhinay Choudhari, Co-Founder & Head New Initiatives in a statement said, "bigbasket is already the grocer of choice for users across segments - B2C and B2B. With the current offering, we will expand our range of products like imported meats, organic vegetables, private label staples, and gourmet range for the HoReCa segment as well. The company is setting up dedicated distribution centres across 8 cities to scale up the business and has plans to achieve Rs 500 crore exit rate by end of FY 2018."

In the words of one of the happy customers of bigbasket, Mr Vijaya Bhaskaran, Chef at Le Meridien, Bangalore said, "The experience of buying our daily requirement for our hotel from bigbasket has been very satisfying. Procuring quality ingredients at the right price and at the right time was always a challenge for the chefs. bigbasket as a valued partner has stepped in and eased the process of procurement. The process of ordering online is convenient and the deliveries have been always on time."

The 5-year-old startup has also entered into a tie-up with OYO rooms. Through this platform, almost 100+ flagship properties of OYO rooms directly order from bigbasket. As per Abhinay Choudhari, "bigbasket is the first Indian company to come up with a complete tech-based solution from ordering to delivery to inventory management for the HoReCa segment. With our presence in 25 cities, we can be a one-stop shop (single vendor) across cities for the entire product range across all categories. We will be able to provide full transparency in the procurement function with 24/7 online MIS on prices, purchases, invoices, etc., thereby enhancing control and minimizing administrative overhead and leakages. We can set up corporate hierarchy in the system in a mother - child relationship to control daily purchases by each property and an ability to consolidate invoices across properties with single payment by central office / HO, thereby reducing administrative overhead in reconciliation and payment handling. Our order handling technology and delivery infrastructure will provide consistency and predictability and high-service levels with no manual intervention."

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