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  Home   : :   How to apply for BigBasket Franchise ? Big Basket Franchise Cost, Investment & Profit Margin
How to apply for BigBasket Franchise ? Big Basket Franchise Cost, Investment & Profit Margin

How to apply for BigBasket Franchise ? Big Basket Franchise Cost, Investment & Profit Margin

Written By Vikas Singh 12-05-2023

Big Basket is a huge name in the online grocery delivery companies. The company is one of the largest online grocer that is headquartered in Bangalore. Several Bangalorians had founded the company back in October 2011 which now is owned by the Tata Group. The company started off by delivering grocery items along with most food and and beverage items and now has expanded its product list to alcohol segment as well. But, only eligible customers can order and purchase these kinds of products.

  • Big Basket Franchise Initial Days
  • BigBasket Franchise Vision
  • BigBasket Franchise Model
  • BigBasket Franchise Revenue Model
  • Advantages of a BigBasket Franchise
  • What Are The Requirements For BigBasket Franchise?
  • Is Big Basket Franchise Profitable? 
  • Big Basket Franchise Profit Margin - Average Profit Margin on Products
  • Documents Required For BigBasket Franchise
  • BigBasket Franchise Cost
  • How To Apply For BigBasket Franchise?

Tata Group recently became the owner of this renowned company by acquiring majority of its stake which is 64%. Back in May 2021, the company’s value skyrocketed to $1.85 billion and with its acquisition made by the Tata Group, Big Basket was already proving a fatal competitor with giant e-commerce players in the market like Amazon, Walmart, Flipkart, and Reliance Fresh as well. 

Company nameBigBasket
Headquarters Bangalore
Founders V.S. Sudhakar, Hari Menon, V.S. Ramesh, Vipul Parekh and Abhinay Choudhari
Industry typeEcommerce grocery delivery
Founded October 2011
Operating revenue (FY22)$1.57 billion 
Total funding $1.3 billion (June 2022)
Valuation $2 billion+
Parent organizationTata Digital Limited
Website https://www.bigbasket.com/
Big Basket Franchise Overview

Big Basket Franchise Initial Days

The story of BigBasket began with its original founders when they decided to exploit the experience that they got after their dot com business failed massively. When their business failed the founders decided to do something unique by creating a website that they have never done before. Founders of the company had gained experience in ecommerce industry whey they had created Fabmart.com.

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Fabmart.com was responsible for selling books, toys, and groceries online back in the year 1999. It was a time when the online or ecommerce industry was not at its peak and the founders had realised that the people was not actually ready to accept the buzz of digitization. It was in the year 2006, when Fabmart merged with a brick and mortar grocery chain which however was the end for Fabmart because the founders decided to sell it for a lump sum amount.

When founders felt that everything was over then came the memorable year of 2011 when the team once again reunited and again wanted to do something new and exciting. The team had received criticism back in 1999 but now they came back with a strong mindset on the fact that this time they had a massive opportunity in front of them which was the internet era. 

By the year 2011 came the smartphone market was booming with anything and everything was available online except groceries. This became the ideal moment for them to introduce BigBasket to the people. BigBasket, at its initial stages used to fulfil its orders by purchasing products from Metro Cash and Carry stores, prior to setting up its first warehouse. 

BigBasket Franchise Vision

BigBasket’s vision statement says, “Discover new products and shop for all your food and grocery needs from the comfort of your home or office.” BigBasket is also doing effective marketing to bring in a huge number of customers each year. The mission statement of BigBasket states, “Right from fresh fruits and vegetables, rice and dals, spices and seasonings to packaged products, beverages, personal care products, meats - we have it all.”

BigBasket Franchise Model

It was in the year 2021 when BigBasket had entered the offline retail space with tech-driven, self-service outlets in Bangalore and by the year Dec 2022, the company piloted its large format supermarket model in Hyderabad. The company do not have a franchise model yet as it is making plans to expand its business not only into online but give its customers the offline experience as well. 

The offline supermarkets that are planning to be opened in several states of the country is intended to bridge the gap between offline and online experiences. With both offline and online model being introduced to the public it is going to support the company’s ambitious expansion plans amid rising competition in grocery retail. 

Even though the pandemic period had urged several offline shoppers to go online now once again consumers are returning to brick-and-mortar stores. It was GlobalData who had confirmed the trend in its Q4 2022 survey,  in which about 59% of the respondents said they were spending on food and drinks at supermarkets.

BigBasket Franchise Revenue Model

The company offers low price point for staples and fruits and vegetables. They also provide idli/dosa batter on sale on their platform which seems to be quite rare that does not have much competition in the market. Moreover, on the B2B side, the company serves its private-label to about a thousand Kirana stores, huge corporates, and hotels, restaurants and cafes as well. The company follows both ‘inventory model’ and as well as ‘hyper-local model’. 

It is under the inventory model where the company purchases products from its leading suppliers like P&G, HUL, mills, farmers etc. the company then stores the products in their warehouses and supplies the same to the customers on its respective order. On the other hand, when it comes to perishable goods, the company has got tie-ups with local farmers and suppliers from whom they procure the goods as per the orders and supplies the same to the consumers. 

Under the hy[er-local model, the company has got tie ups with more than 2000 grocery stores across the country to deliver its products within an hour from the neighbourhood. Now, with the opening of its physical store in Hyderabad the company is going to have strong revenue from its offline stores as well.

Advantages of a BigBasket Franchise

Since the company is entering into the offline business by opening up supermarkets interested entrepreneurs can be a part of its expansion plan. There will be various advantages when joining hands with a company like BigBasket. Some of the benefits/advantages of a BigBasket franchise could be the following.

  • Immense support from Tata Digital. Tata being the owner of the company is helping the company by funding them being its primary investor. The company had raised USD 200 million from Tata Digital.
  • Strong branding. The company has done effective marketing and advertising campaign and has onboarded Bollywood King, Shah Rukh Khan as their brand ambassador. 
  • BigBasket’s loyal customer base has 1.5 million customers shopping on its platform every month.

What Are The Requirements For BigBasket Franchise?

  • Location 
  • Franchise agreement
  • Eligibility criteria 
  • Investment 

Eligible entrepreneurs can contact BigBasket personnel to open up its franchise in the preferred location. However, they must be suitable to run and manage the outlet which is why they need to be at least 21 years or more. They would have to sign the franchise agreement and then invest on setting up the store of BIgBasket.

Is Big Basket Franchise Profitable? 

Tata as a brand is known to be one of the most trustable and reliable brands in the world. The same goes for all of its subsidiary brands and acquisition brands. Similarly, Big Basket is one of those brands under Tata Group that is quite a profitable business. In today’s market, Big Basket has become one of the go-to e-commerce websites for customers when it comes to groceries. 

One of the main reasons why Big Basket is so famous and profitable is because of its infrastructure. The owner of Big Basket earlier found out that, the grocery industry in India does not have proper refrigeration to store vegetables, fruits, and other grocery items. The establishment and introduction of Big Basket ensured that the refrigeration of all vegetables and fruits gets proper refrigeration. 

On the other hand, the quick delivery of essential products such as dairy items and groceries became a good attraction for Big Basket. Big Basket started delivering such essential items within 90 minutes in major cities like Bangalore and Pune. Big Basket as a company is yet to start the franchise option but, as a company the expected GMV for the financial year 2022-23 is Rs 13,000 crore. 

Big Basket Franchise Profit Margin - Average Profit Margin on Products

Unfortunately, Big Basket does not provide a franchise business option to the general public in India. We could expect a change in this decision in the coming years but, as of now, no franchise option is offered to the general public in the country. 

Currently, Big Basket mostly operates through its online method where goods are bought to their warehouses or storage and are further delivered to end customers. The co-founder of Big Basket has recently revealed that they will significantly scale up offline stores from 90 to a whopping 695 this year to reach out to 100 per cent of its customer base

Documents Required For BigBasket Franchise

  • ID Proof (aadhaar card, pan card, voter card)
  • Address proof (electricity bill)
  • Rent agreement if necessary
  • Trade licences
  • Photograph 
  • Bank details 
  • Cancelled cheque 

Assistance Provided By BigBasket

  • Inventory planning
  • Product pricing 
  • Client interaction training 
  • Relationship manager support
  • Business management software
  • Operation manual
  • Training manual
  • Unit interior and exterior ads
  • Local advertisement 
  • Product information training
  • Product display training 
  • Training helpdesk

BigBasket Franchise Cost

The cost or rather say the investment could hugely cary from city to city. But, on average the cost would be around INR 10 lacs minimum. There is a franchise fee which is INR 3 lacs and a deposit fee of INR 2 lacs. The initial investment include the cost of setting up its store which is around INR 5 lacs. The total investment for a BIgBasket franchise ranges between INR 10 lacs to 12 lacs. 

How To Apply For BigBasket Franchise?

All you would have to do is fill out an online form or you can directly contact the company personnel. If you are filling out the online form then you would have to submit it along with the required documents. Once your application is approved by the company you will be contacted by a representative from BigBasket who is going to help you with the further processing. 

The very first step is to be eligible for getting the franchise and then being ready with the investment cost along with the suitable location for setting up the store. It is during this time when you would also have to sig the agreement form which you need to do it after carefully reading the terms and conditions. 

Disclaimer: The information provided in this post is for general informational purposes only and does not constitute professional advice. Please consult a qualified professional before making any decisions based on this content.

Vikas Singh

Vikas Singh

He is New Delhi-based Business Analyst and Marketing Specialist, brings 6+ years of experience in driving business growth. He has authored 100+ insightful articles on new business ideas and franchise opportunities, empowering entrepreneurs with actionable strategies.

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