BigBasket secures $50 million funds as Series ‘C’ from Bessemer Venture Partners , Ascent Capital Group, Helion Venture Partners and Zodius Capital yesterday. Bengaluru based BigBasket aims $1 billion valuation in coming months. The company is a leading online grocery store having operations in major metros of Bengaluru, Hyderabad, Pune, Chennai, Mysore and Delhi NCR Region.
BigBasket was founded in 2011 by a team of five namely Hari Menon, Vipul Parekh, VS Ramesh, Abhinay Choudhari and V Sudhakar. The team is veteran in nature had earlier set up Fabmall, which was established Trinetra called Fabmall Trinetra. The company was sold subsequently to Aditya Birla Group, AB Group rechristened Fabmall Trinetra under brand name ‘More.’
According to news report BigBasket has mandated Citigroup to raise $150 million from new investors. The company plans to kick start its operations in 50 tier -2 cities across India. The recent funding is a step towards in that direction. With the fund raising the company has been valued $400 million making it one of the biggest online grocery stores.
BigBasket claims to close the current fiscal ending 2016 with a revenue earnings of $400 million, 4 folds jump from $100 million in this month. Another interesting trend is that BigBasket is generating 33% revenue from its private labels and may cross 40% by the end of financial year. On an average the company claims to be receiving 6,000 orders per day.
The fresh round of funding comes amidst BigBasket closest competitor Grofers having raised $45 million funds from Tiger Global and Sequoia Capital. Grofers claims to have generated 400,000 order in the month of July 2015. There is lot of activity in online grocery store business with the entry of Amazon’s Kirana Now and Ola’s Grocery entry. Flipkart is planning to rollout its online grocery services called fQck.
Although Indian market is still dominated small time provision stores, where a customer can buy things on credit basis and offer lot of other services such mobile recharges to vegetable vending. Food and vegetables are perishable in nature offers lot of challenges when it comes quick services. Amazon’s Kirana Now have tied up with small departmental/ provision shops where the staff of Kirana Now will pick up the stuff from the shops and delivery it to the customers at a quickest possible time.
To address delivery issues BigBasket has acquired Delyver few months back, this move has given ultimate push for BigBasket, which is catering the ever growing demand for faster delivery. BigBasket has already in right path as per plan with the expansion of tier -2 cities rollout, as prelude the company has rolled out its services in Mysuru.