Grofers is 1/5th of Big Basket which has 73% Market Share in Grocery

Big Basket never even skipped a beat.

The gap is staggering. Big Basket started in 2011 as part of K Ganesh & Meena’s growth story; while many bashed the business model and more scoffed at the prospect of a venture built company that could scale. The numbers speak for themselves.

Since 2011 they’ve raised $247 Mn, using part of the money to create a private label play that accounts for as much as a 3rd of their revenues: Staples are sold through ‘Popular’ & ‘Royal’; fruits & veggies through ‘Fresho’.

2013, saw the birth of one of the hottest start ups of our times — Grofers. Despite raising a massive $166 Mn within 2 years of its birth Grofers has struggled to gain significant wallet share with customers.

Lest I be accused of ignoring Amazon Now; their market shares as of now is simply not material. Would I write them off in this market? Certainly not. Amazon more than any other company out there, is comfortable with a chase. See here & here .

Before moving on, I want to quickly explain what a Net Promoter Score (NPS) is. We define NPS measures the willingness of customers to recommend a company’s products or services to others. We measure it on a scale of -1 to 1. For a more detailed explanation — click here.

Big Basket has clearly been working hard to improve the customer experience; while Grofers reacted more slowly. The benefits of an owned inventory vs. market place model accrue all the way down to customers.

Thanks for your time,

Ashish
- Team KG

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You can reach me on ashish@kalagato.com