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.