BigBasket.Com: Redefining the Business Model

Abstract

BigBasket.com had emerged as one of the major players in highly competitive Indian online grocery retailing market by employing inventory based model. On 22 March 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 29 March 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 for formulating a business strategy for taking the online grocery retailing business further.