Product Overview

BigBasket.com had emerged as one of the major players in highly competitive Indian online grocery retailing market by employing inventory based model. On March 22, 2016, Big Basket had secured Series D funding worth USD 150 million from the United Arab Emirates-based Abraaj group for driving its future growth. A few days later, the Government of India came out with guidelines on March 29, 2016, through its Press Note No. 3 (2016 Series) which stated that Foreign Direct Investment (FDI) in the inventory based model of e-commerce would not be permitted. As BigBasket grappled with the challenges of a growing and expanding business, BigBasket team had to evaluate the existing business model. This case traces the predicament of BigBasket in formulating a business strategy for taking the online grocery retailing business further.

Learning Objectives

The main objective of the case is to highlight the issues facing the online grocery retailing industry. The case provides an opportunity to understand different business models operating in the evolving Indian online grocery retailing market and their appropriateness in the existing business environment. The case can also be used to discuss the various opportunities available to entrepreneurs in this industry. It will also help students familiarise themselves with the challenges in the online grocery retailing business and ponder over possible solutions to tackle these challenges.