Bengaluru-based hyperlocal grocery delivery startup BigBasket has raised ₹1,050 crores ($150 million) in series F funding round and has marked its entry to the Unicorn club of India. It is the only online grocery startup to achieve unicorn status in India. The startup sold shares at $114.28571 per share to Chinese e-commerce giant Alibaba, the UK government-backed CDC Group and South Korea’s Mirae Asset Global Investments.
Ashish Dave, head of India Investments for Mirae Asset Global Investments, said, “SGSPL (BigBasket) offers a transformational and convenient experience to its consumers, which makes it a preferred grocery platform. As India moves towards organized retail that offers standardized quality, comfort and speed in the shopping experience, we firmly believe the bigbasket brand will continue to define this segment as a category leader.”
BigBasket will use the freshly raised funds to accelerate its growth and penetrate into existing markets. Furthermore, the capital will be used to scale up its supply chain and develop new reseller channels. The startup has raised around ₹7,140 crores ($1.02 billion) in 14 funding rounds since its inception. It counts Alibaba, Helion Venture Partners, Abraaj Group, LionRock Capital and Bessemer Venture Partners as its backers.
Srini Nagarajan, managing director and head of Asia at CDC India Advisers, said: “The business’s innovative model progressively addresses these topics, increasing its rate of employment and positively impacting people’s lives such as its network local supplier farmers and workers.”
Founded by S Sudhakar, Hari Menon, Vipul Parekh, V S Ramesh and Abhinay Choudhari in 2011, the startup has reached over 1 crore registered customers and processes more than 1 lakh orders every day. BigBasket claims to have more than 20,000 products from over 1,000 brands and sells the same in more than 25 cities across India.
The startup aims to touch ₹7,000 crores ($1 billion) gross sales by the end of this financial year. The company has witnessed around $33 million (₹230 crores) in gross monthly sales with an annual exit rate of ₹3,000 crores ($435 million) in March 2018. The startup has created in-house brands like Fresho for vegetables and fruits, Royal and Popular for staples and Tasties for snacks.
The online grocery market will touch ₹270 crores ($40 million) mark by 2019 and will grow at a CAGR of 62% till 2022, according to a Goldman Sachs report. Players like Dunzo and Swiggy has entered the market to fulfill the demand. The latest funding round will help BigBasket diversify and expand to stay relevant to the needs of the consumers.