BigBasket, the e-commerce grocery store, anticipates to invest almost more than Rs 500 Crore to make its back-end supply chain for farmer and technology stronger as it seeks to increase more than 2x its user base by the end of 2020 to 20 Million. This data was given by a top executive of the company to the media in an interview.
“We are aiming considerably on making strong Farmer Connect, which is our program for back-end supply chain of farmer. Currently we are operating with almost 1,800 farmers, and the company will convey services to almost 5,000 farmers in a year’s period into our fold,” claimed CEO and co-founder of BigBasket, Hari Menon, to the media in an interview.
“We make sure that they get paid on time and they get better costs. Almost 85% of our products arrive straightly from farmers and we are making efforts to make that stronger. We work working closely with restaurants and hotels as well as almost 2,000 kirana shops. For the supply, we need to intensify our engagement with farmers,” he claimed further in his statement.
“All our centers are near to farming spots. We have almost 26 stockrooms in 30 towns,” he additionally claimed this week. The firm is also forcefully expanding its consumer base, aiming 20 Million users by 2020 from the current 8 Million. The firm also aims to spend in tech to additionally make back-end efficiencies and customer service areas stronger, Menon claimed to the reporters while in an event this week.
He claimed that the anticipated spending on all these projects might be almost more than Rs 500 Crore. “These last couple of years we have created our ground and got our back-end in position. We have a well-lubricated system, from accuracy in delivery and delivering on time to accuracy of share levels,” he claimed to the media.
When asked related to the profitability, Menon claimed that last year the firm tuned out to be operationally profitable in 2 cities namely Hyderabad and Bengaluru. “In the upcoming 2 Months, 3 extra cities comprising Chennai, Kolkata, and Ahmadabad will be operationally money-making, and in 6 Months all our towns must have broken even on an impartial basis,” he claimed. This will allow the firm to then assign its resources for the media investment and other activities to gain its targets related to development, he claimed to the media while explaining the situation. Currently, the firm has almost 16,000 workers, comprising delivery staff.