BigBasket shuts offline grocery stores to focus on quick commerce
What's the story
BigBasket, the Tata Group-backed online grocery platform, is shutting down its offline retail format, Fresho. The move comes as part of the company's strategy to focus on scaling its quick-delivery business. Fresho was launched in 2021 and at its peak had nearly 200 outlets across India. The chain was initially expected to grow to around 800 outlets across India, catering to consumers who were reluctant to try online grocery shopping.
Strategic pivot
Strategic shift to quick commerce
The decision to shut down Fresho stores comes after BigBasket's strategic shift toward quick commerce and exit from the slotted delivery model. "Post the pivot to quick commerce, the company has taken a call to shut down its physical stores and focus on scaling the quick deliveries," sources familiar with the matter told BusinessLine. Every Fresho store offered fresh fruits, vegetables, and other grocery essentials from BigBasket's online catalog.
Growth strategy
Plans to double dark stores
Despite the closure of its offline stores, BigBasket is not slowing down. The company plans to double the number of its dark stores from 400 to 700 by FY26-end. This aggressive expansion comes amid pressure on BigBasket's financial performance. Its B2C arm, Innovative Retail Concepts, reported a 3% drop in turnover to ₹7,673 crore in FY25 while losses widened from ₹1,267 crore in FY24 to ₹1,851 crore in FY25.
Business performance
Financial performance and valuation
BigBasket's B2B unit, Supermarket Grocery Supplies, also witnessed a 7% decline in revenue to ₹2,227 crore. The company's last valuation stood at $3.2 billion in December 2022 after raising $200 million from Tata Digital. Tata Sons owns over 65% of the firm with Mirae Asset VC and UK's CDC Group as other investors.