BigBasket is a Bangalore-based online grocery delivery startup founded in December 2011 by three friends Sudhakar, Hari Menon, Vipul Parekh, Abhinay Choudhari, and Ramesh. The company primarily supplies its customers with food products from convenience stores, household goods, and grocery supplies. SWOT Analysis Of Big Basket Explains the Strengths, Weaknesses, Opportunities, and Threats.

In March 2019, BigBasket received a $150 million investment from Mirae, Alibaba Group, and CDC Group, giving the company a valuation of over $1 billion. In March 2020, BigBasket acquired micro-delivery company DailyNinja.

In February 2021, Tata Group acquired a 64.3% stake in BigBasket for approximately Rs 9,644 crore ($1.3 billion).


Did You Know?

BigBasket parent company is Supermarket Grocery Supplies Pvt. Ltd.,

SWOT Analysis Of BigBasket:

SWOT Analysis of BigBasket discusses the company’s strengthsweaknesses, figuring out how the company is planning to expand, growth strategies which we call opportunities and threats. As one of India’s Largest Grocery E-Commerce companies, it has several strengths, weaknesses, opportunities, and threats.

S For Strengths ( Internal Factor )

As an essential component of SWOT, a company’s strength is its asset to plan its expansion. BigBasket has several strengths that make them one of the largest Online Grocery Delivery Platform in India:

  • Huge Range Of Products: Big Basket offers a huge range of items which includes almost 18,000 products on its platform.
  • Exotic Products: Big Basket also offers exotic fruits, vegetables, and foreign foods that are not readily available in local supermarkets. This gives them the advantage of appealing to consumers who want to buy such products.
  • Targeted Customers: They have chosen their target customers very carefully and have established themselves in major cities and some Tier I cities. They are operating in Bangalore, Hyderabad, Mumbai, Pune, Chennai, Delhi, Mysore, Vadodara, Patna, Indore, Vijaywada, etc. At present they are operating in about 25 cities.
  • Huge Discounts offers: BigBasket offers attractive discounts on several items. They still offer a merchandise bundling strategy that aims to increase sales and provide full discounts to consumers. This makes them a lucrative buying choice for consumers.
  • Convenience: Big Basket saves you the hassle of waiting in mall lines or going to department stores. The company delivers the goods directly to your doorstep and offers various payment options. The promise of timely delivery makes it a profitable choice. Customers can shop at any time of the day, especially in big cities where life is very fast and it is difficult to meet customers.
  • Low-Cost Business Model: Most of the goods sold by Big Basket are perishable and therefore depend on the retail stores that the company works with to procure the goods. This ensures that they have low inventory costs and makes their business plan more efficient.
  • Marketing: Big Basket is endorsed by Shahrukh Khan, a leading Bollywood Star. Big Basket promotes its products online through Google Ads, Facebook Ads, and Instagram Ads.

W For Weakness ( Internal Factor )

Everybody has positive and negative sides; likewise, Bigbasket has its weaknesses. Though Bigbasket remains a Grocery E-Commerce king in India, they are many weaknesses that may become a nightmare to Bigbasket growth.

  • Home Delivery: Customers must be at home when Big Basket wants to deliver. This means that customers must plan according to the delivery time. If the order is delayed for any reason, customers will be angry and dissatisfied with the service. They also have to pay a little extra for home delivery.
  • Delivery Timings: Big Basket delivers groceries the next day. Many retailers have introduced the option of home delivery to nearby companies and customers in just minutes to hours. Hence, customers prefer this instead of waiting for 24 hours.
  • Variable Cost: The cost of running multiple distributors, delivering vehicles, handling perishable goods, and transportation losses leave the company with high variable costs. They have to fork out more capital and may take longer to crack the deal.
  • Minimum Order Rule: Below a certain order price threshold, Big Basket does not offer home delivery. This means that customers would be forced to add a product or two just to take advantage of the service. As a result, they lose a customer.
  • Cancellation Of Order: Big Basket relies on the stores they have partnered with to supply them with the products. And if the shop does not have the item they ordered, they have to cancel the order. The frequency of cancellations not being in stock is higher at Big Basket, which makes customers unhappy.
  • Data Privacy: Big Basket faced allegations of data threats in 2020. The data of 2 crore customers was put up for sale on the dark web.

Also, Read the SWOT Analysis Of Asian Paints in a Simplified Way.

O Stands For Opportunities ( External Factor ) 

  • Market Share: The Indian retail market is worth more than about $550 million and grocery alone covers 60% of that share. So it is a huge market with many players to accommodate and many customers to serve.
  • Grocery E-Commerce Growth: India is the sixth-largest food market in the world. E-commerce grocery is growing at a pace of 19 percent year on year.
  • Market Expansion: Some cities are not yet served by these startups, and Big Basket should target them and take advantage of first movers. They can spread to cities with two tiers and grow their market.
  • Cross-Selling: Cross-selling is a great advantage for the Big Basket, as it will offer many items through commodity bundling.
  • Own Brands: Own packaging and private label can help Big Basket increase its profits.
  • Digital Ads: Big Basket can formulate strategies to promote its services through online channels such as Google Ads, Youtube promotions, Facebook, and Instagram Marketing.

T Stands For Threats ( External Factor )

  • Competition: It has a small presence in terms of cities covered, hence it gets a lot of competition from other startups like Grofers, PepperTap, Nature’s Basket, Zop Now, Aaram Store, Mera Grocer, etc.
  • Big Players: Bigger players are now getting into this lucrative business in terms of financial backing and commitment. Players like Amazon, Flipkart, and Google have entered this business. This will prove to be a threat for smaller players like Big Basket to trade with.
  • Entry Of New and Local Players: due to increasing cybercrimes, customers are scared of their data exposure, which ultimately affects Amazon and other e-commerce stores. They should develop tech to swipe out cybercrimes.
  • Customer Retention: Customer retention is really challenging. Customers will prefer to switch towards the service company providing the most discounts and faster delivery.

SWOT Analysis Of Big Basket Key Takeaways

The SWOT Analysis of Big Basket highlights where the brand currently stands and its threats in this era. Following the detailed SWOT  Analysis of Big Basket, Here are Few Important Key Points.

  1. Bigbasket is India’s largest Grocery e-Commerce company with a 35% market share.
  2. BigBasket has huge growth potential due to its parent company Tata.
  3. Bigbasket has huge collections of fruits and vegetables including Exotic ones.


Following the detailed SWOT Analysis of Bigbasket, we have few suggestions from Business Mavericks:

  1. provide faster delivery for customers.
  2. Should partner with delivery companies and also it should try to acquire companies related to its business.
  3. Provide more flexible and convenient delivery timings for its customers.

BigBasket Competitors

  1. Grofers is an Indian online food delivery service. It was founded in December 2013 and is headquartered in Gurgaon. In 2018, the company raised around $535.5 million from investors such as SoftBank, Tiger Global, and Sequoia Capital.The name Grofers is a portmanteau of “grocery gophers”. The company’s customers use a mobile application to order groceries online. Grofers employees then retrieve the items from their warehouse and deliver them to the customer. Delivery can be scheduled for any time of day. Grofers currently operates in more than 30 cities in India.

    During the coronavirus pandemic in 2020, Grofers was among the few online grocery platforms that remained active in India, along with Amazon India and Big Basket.

  2. Blue Apron is a food delivery company that focuses on providing customers with pre-measured ingredients and recipes to prepare meals at home. The company also offers Blue Apron Wine, a wine delivery service that delivers wines directly to consumers. In addition, the company distributes beef, poultry, and lamb products under the brand name BN Ranch.
  3. MissFresh E-Commerce is a company that operates an integrated online and offline retail business of fresh produce and fast-moving consumer goods. It develops the Missfresh mobile application for the purchase and delivery of fresh vegetables, fruits, meats, eggs, seafood, and beverages. The company supplies supermarkets, fresh markets, and retailers.
  4. Amazon Fresh is an online supermarket for your grocery and household needs. With Amazon Fresh, you get grocery items at competitive prices, delivered to you at ultrafast speed.

This is Mohanraj Reddy✌️❤️ Creator at Business Mavericks & a Big Dreamer, Wanderlust, Music, & a Trader.

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