BigBasket Issued Equity And Compulsory Convertible Preference Shares to Trifecta
Bengaluru-based online grocer BigBasket has raised $839 K(INR5.5 Cr) from its existing investor Trifecta venture debt fund. As per recent filings with the registrar of companies (RoC), Supermarket Grocery and Supplies that runs the online grocery store, issued equity and compulsory convertible preference shares to Trifecta at a premium of $7.2 (INR 474) and $76(INR 4,980) for equity and preference share per share respectively.
The funding announcement comes after BigBasket raised about $6.9 Mn (INR 45 Cr) venture debt from Trifecta Capital in March this year. Last month, BigBasket also received a nod from the government on its investment proposal for FDI in food retail.
Started by Fabmall founders VS Sudhakar, Hari Menon, VS Ramesh, Vipul Parekh, and Abhinay Choudhari in 2011, BigBasket has to date raised about $305.8 Mn spread across six rounds. BigBasket’s online grocery stores are present in more than 26 cities across India, including in Bengaluru, Hyderabad, Mumbai, Pune, Chennai, Delhi, etc. According to a company statement, the online grocery store stocks over 20,000 products and 1,000 brands including fresh fruits and vegetables, packaged bread, bakery and dairy products, etc. The company claimed to have crossed the 5 Mn customers mark in May 2017.
This year, BigBasket has been in the news for being the in talks with many a players for a stake sale or acquisition. In April, it was reported that BigBasket and Gurugram-based hyperlocal grocery delivery startup Grofers, were in talks for a potential merger. However, Albinder Dhindsa, founder and CEO, Grofers refuted the reports at that time.
In June, multiple reports had surfaced regarding Amazon having preliminary talks with the Bengaluru-based online grocery startup BigBasket, for a possible acquisition. However, the online grocery startup refuted the news of talks with Amazon for an acquisition.
Similarly, in July 2017, it was reported that Paytm Mall was in talks with BigBasket to invest $200 Mn for a substantial stake. Later Chinese ecommerce joint Alibaba was also said to have joined the talks.
At that time it was reported that Paytm had also started due diligence of BigBasket accounts and operations. An unnamed source said, “(Even) before the due diligence, Paytm (Mall) has offered $200 Mn to own a majority stake in BigBasket. The final agreement will be made only after the due diligence process gets over.”
According to a Goldman Sachs report, “The domestic online retail industry is evolving into a hyperlocal, on-demand market. India’s ecommerce market is estimated to grow 15 times to $300 Bn by 2030.” The Indian online grocery market is estimated to reach $40 Mn (INR 270 Cr) by FY19 growing at a CAGR of 62% from 2016 to 2022. However the hyperlocal market is ridden with losses, shutdowns, and fluctuating investor interest. For the financial year ending March 2016, BigBasket posted a loss of $11.91 Mn(INR 78 Cr) on revenues of INR $88.56 Mn(580 Cr). Other startups in the grocery segment, apart from BigBasket include ZopNow, Satvacart, Grofers, Godrej Nature’s Basket, and DailyNinja to name a few.
(The development was reported by Financial Express)
