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Online grocery retailer BigBasket is in discussions to rope in a bunch of new investors like Singapore government’s Temasek, US-based Generation Partners, Fidelity and Tybourne Capital, for a $350-400 million financing round.

BigBasket’s business has gathered momentum amid the coronavirus pandemic as consumers buy groceries and everyday essentials online.

The e-grocer is expected to see its valuation gain around 33 per cent to approximately $2 billion, post the investment.

Alibaba, which is a major investor in the Bengaluru-based firm with around 28 per cent stake, is not pumping any fresh capital into the e-grocer in the wake of a larger anti-China sentiment and FDI curbs imposed by the government. Meanwhile, a source also told the publication that Alibaba would be slashing its shareholding in BigBasket to 20 per cent following this financing round.

Sources emphasised that BigBasket has a monthly burn of around $7-8 million and the last fundraise would last until November-December. In May, BigBasket had claimed to reach Rs 650 crore in monthly sales. Besides grocery, the company also runs subscription commerce platform BB Daily.

With BB Daily, BigBasket clocks around 300K orders per day.

Online grocery has turned hyper-competitive after the entry of JioMart and the country’s second and third largest e-grocers BigBasket and Grofers have been feeling the heat. To maintain their positions, the duo needs to raise large funding rounds and BigBasket appears close to raising a fresh round. 


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