BigBasket, an India-based online grocery player owned by conglomerate Tata Sons, has raised US$200 million at a US$3.2 billion valuation, the platform’s co-founder and CEO Hari Menon told Tech in Asia.
A BigBasket distribution center / Photo credit: BigBasket
The news was first reported by Economic Times.
In March, the e-grocery firm was valued at US$2.7 billion following a secondary share sale.
Founded from a small office in Bengaluru in 2011 by Menon and four other partners, V S Sudhakar, Vipul Parek, Abhinay Choudhari, and V S Ramesh, BigBasket was acquired by Tata Sons through its subsidiary Tata Digital in 2021.
Largely focusing on online grocery, BigBasket has also expanded to quick commerce via BB Now and subscription-based service via BB Daily. The platform also operates an instant meat-delivery service via Fresho Meats and an online beauty shop called The Beauty Store. It even offers offline grocery services via Fresho Stores.
The company is also planning to add 1mg, Tata Digital’s online pharmacy offering, on the platform, according to the ET report.
Nearly US$40 million-US$50 million of the fresh funds will be used to expand BigBasket’s quick-commerce business, Menon told ET. However, he clarified that quick-commerce cannot be a “standalone business” because of “lower average order value.”
Focusing primarily on online grocery, BigBasket has been a late entrant in the quick-commerce segment, with players such as Zepto, Zomato’s Blinkit, and Swiggy Instamart accounting for 80% of the total market.
See also: The key players in Southeast Asia’s quick commerce space
Miguel Cordon and Arpit Nayak
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