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BigBasket Just Got Bigger: May Raise $150 Million, Says Report, To Become First Indian Unicorn Of 2019
Representative image. (Hemant Mishra/Mint via Getty Images)
Online grocery shopping platform BigBasket is finalising a deal to raise $150 million with a valuation of more than $1 billion, reports Economic Times (ET).
If the deal pulls through, BigBasket will become the ninth startup in India to achieve the ‘unicorn’ tag (startup with a valuation of $1 billion). While existing investors in the e-grocer, Alibaba, will lead the funding round with $50 million, new investors like UK government-owned CDC Group and South Korea’s Mirae Asset Global Investments are also expected to pick up stakes in the firm.
Presently, Alibaba owns a stake of 24 per cent in BigBasket, with Ascent Capital at 15.5 per cent, Abraaj Group at 16.2 per cent and 11 per cent stake is owned by the founders and promoters.
“This round gives BigBasket firepower to be aggressive and maintain market leadership against Amazon, Flipkart and Grofers. It allows BigBasket to venture into new cities and categories such as microdelivery,” said a source to ET.
Why Go Grocery Shopping?
According to a CRISIL report, grocery will be the fastest-growing segment in online retail in India and it is expected to almost quadruple over the next three years to a Rs 100 billion opportunity.
“Grocery is the mother of all categories with its inherent characteristics of high frequency, repeat rates, ability to launch own brands (high margin) and sheer size of the sector,” said K Ganesh, serial entrepreneur, to Fortune India.
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