BigBasket To Raise $25 Mn From International Finance Corporation

BigBasket To Raise $25 Mn From International Finance Corporation

IFC Will Acquire A Minority Stake In The Bangalore-Based Online Grocer

Bangalore-based online grocer BigBasket is looking to raise $25 Mn from International Finance Corporation, the private investment arm of World Bank. IFC, in turn, will acquire a minority stake in Supermarket Grocery Supplies Private Limited – BigBasket’s parent company.

A statement on IFC website revealed that the investment in Supermarket Grocery Supplies will be used to finance the expansion of the company’s wholesale trading and supply business in India.

Supermarket Grocery Supplies is engaged in wholesale trading and supply of groceries, provisions, fruits, vegetables and related household products. It is the principal supplier and intellectual property licensor, on a non-exclusive basis, to BigBasket. The BigBasket property is run by a separate firm, Innovative Retail Concepts Pvt Ltd, under licence from Supermarket Grocery.

The investment is also aligned with IFC’s regional strategy as it provides strong linkages to the local economy, and will promote inclusiveness through direct job creation in urban and semi-urban areas and by developing local supply chains, said IFC.

In August this year, BigBasket raised $50 Mn in a funding round led by its existing investor Bessemer Venture Partners. TOI reported that it has also mandated Citigroup to raise $150 Mn (about INR 950 Cr) from a set of new investors – this would propel its valuation to a staggering $1 Bn.

Helion Venture Partners, Ascent Capital and Zodius Capital also back the online grocer.

BigBasket, which recently expanded into the Delhi-NCR markets, plans to expand its operations to 50 more Tier-II cities. It was founded by ecommerce veterans Hari Menon, VS Sudhakar, Vipul Parekh and Abhinay Choudhari in 2011.

Hari recently told TOI, “BigBasket would exit the current financial year with a revenue run rate of $400 Mn, a four-fold jump from the $100 Mn in August. Our revenue run rate projection for the next financial year, FY17, is $1 Bn.”

BigBasket’s private labels like HappyChef and others, currently, bring in about 33% revenue, which is expected to reach 40% by end of this year.

The company has also rolled out a new service where it supplies groceries to kirana stores (mom-and-pop grocers), using its existing supply chain operations. This helps these small grocery stores to source their supplies more frequently (on a daily or weekly basis), as opposed to the traditional suppliers and distributors who supply them once every 20 to 30 days.

Author

Rahul Raj

Inc42 Staff
A journalist, photography enthusiast and a story-teller. He's a Senior Journalist @Inc42 Magazine. You can reach him at [email protected] with news tips, story ideas, feedback, and insights.
Responses
https://inc42.com/flash-feed/webengage-launches-appengage/

Upcoming Events