Tata group-owned BigBasket is shaking up its instant grocery delivery strategy. The company now tailors discounts at individual dark stores based on their order volumes. This move comes as competition heats up in India's quick commerce sector.
BigBasket's Store-Level Discount Model
BigBasket applies different discount levels across its dark store network. Stores reporting lower order volumes offer steeper discounts to attract more customers. Meanwhile, high-volume stores reduce discounts for identical items and quantities.
Two sources with direct knowledge of the matter explained this approach. They requested anonymity while sharing details about BigBasket's operations.
Transformation to IBBN Stores
BigBasket began revamping its dark stores approximately one year ago, in early 2025. The company converted traditional dark stores into larger Integrated Big Basket Now (IBBN) outlets. These new stores stock significantly more products than their predecessors.
"IBBN started as a pilot project in select cities," said the first source. "It later expanded nationally after demonstrating success."
This transformation represents part of BigBasket's broader strategy to strengthen its quick commerce model called BB Now. The company originally built its business around scheduled delivery slots from large warehouses. Over time, it developed BBNow to provide faster deliveries within minutes.
"BigBasket has fully pivoted to quick commerce," the first source confirmed. The company now integrates traditional and rapid delivery offerings into a unified model prioritizing faster fulfillment.
BigBasket did not respond to an email seeking comments sent on Friday, 9 January.
Understanding IBBN Store Economics
An IBBN dark store typically covers about 20,000 square feet. These large-format stores stock between 40,000 and 50,000 unique products, according to the second source.
A Bernstein report from November 2025 provided context about competitors. Swiggy Instamart operates dark stores averaging approximately 4,200 square feet. Blinkit's stores range between 3,100 and 3,500 square feet.
Satish Meena, founder of Datum Intelligence, emphasized that dark stores must achieve individual profitability. "If you are running a chain, each store has to be profitable on its own," he stated.
Two Store Categories: Unnati and Pragati
BigBasket classifies its IBBN stores into two distinct categories. Unnati stores, meaning "growing," currently handle about 500 orders daily. The company aims to increase this to approximately 1,500 daily orders for these stores to reach break-even point.
Pragati stores, meaning "progress," process roughly 1,200 orders each day. These outlets are already profitable. BigBasket's objective involves converting as many Unnati stores into Pragati stores as possible.
Currently, Bengaluru hosts 26 Unnati stores and 14 Pragati stores, according to the second source. The national count remains unverified independently.
Meena highlighted the challenges of sustaining losses in this cost-heavy model. "You can't keep running a dark store in a locality for 12 months if it's not profitable," he explained. Fixed costs including rent, electricity, and refrigeration significantly impact unit economics.
The Bernstein report detailed cost breakdowns. Delivery expenses account for about 45% of total costs, with each delivery costing around ₹50. Staff salaries constitute another 30% of expenses.
Discount Disparities Across Locations
"To increase orders from Unnati dark stores, products sell at much steeper discounts," said the first source. This strategy creates noticeable price differences when customers use the BB Now application.
For example, a 1-kilogram pack of local tomatoes costs ₹58 in Indiranagar, central Bengaluru. The same product sells for just ₹29 in Whitefield, an eastern suburb. Egg prices show the opposite pattern. A dozen Fresho eggs cost ₹64 in Indiranagar but ₹126 in Whitefield.
Fresho represents BigBasket's own brand. Observers noted several similar disparities across groceries and staple items.
Precision Discounting and Industry Funding
Both sources confirmed that deep discounting encourages higher order volumes. Meena added that discounts in quick commerce are becoming increasingly localized.
"Brands now offer discounts at the zip-code or dark-store level," he said. "Pan-India discounts are no longer necessary." This precision approach is becoming standard across the industry, with offers, products, and pricing varying between individual dark stores.
Funding in the quick commerce sector has surged dramatically over the past ten months. Zepto raised over $1.4 billion across multiple late-stage funding rounds. The company prepares for an ₹11,000 crore IPO in 2026.
Swiggy supported Instamart with a ₹10,000 crore Qualified Institutional Placement. Zomato channeled part of its ₹8,500 crore capital raise into expanding Blinkit's dark store network.
Intensifying Competitive Landscape
Competition continues to sharpen across India's quick commerce market. Flipkart Minutes expanded from a few hundred to over 500 dark stores during 2025. The company plans to reach approximately 1,000 stores by March or April 2026 across more than 60 cities.
Amazon's 10-minute delivery service is scaling rapidly. The e-commerce giant targets about 300 micro-fulfillment centers by year-end.
According to Reliance's latest investor presentation, JioMart operates across 5,000 pin codes. The platform maintains more than 3,000 stores in over 1,000 cities nationwide.
BigBasket's dynamic discount strategy represents one approach to navigating this fiercely competitive environment. The company continues refining its store-level economics while expanding its quick commerce presence across India.
