0$0.00

No products in the cart.

Bigbasket to get $60m from Alibaba, Mirae, Retail News, ET Retail


Bigbasket to get $60m from Alibaba, MiraeBengaluru: Online grocery retailer Bigbasket is in the final stages of raising a $60-million round of funding. The round is led by existing backers Chinese e-commerce giant Alibaba, along with others like South Korea’s Mirae Asset Ventures and UK’s development finance institution CDC Group, said two sources briefed on the matter.

The internal round will value Bigbasket at $1.2-1.3 billion, similar to its valuation during the last funding, as it shores up its balance sheet in an overall tough fund-raising market. The discussions for the round had been ongoing before the lockdown, said one of the sources mentioned earlier.

The development comes at a time when the Bengaluru-based company has doubled its capacity to fulfil 3-3.5 lakh orders a day from 1.5 lakh as demand has skyrocketed during the lockdown due to the coronavirus pandemic. Bigbasket has been building its delivery capacity through tie-ups with cab aggregators like Uber and out-of-work restaurant workforce as a lot of its workers left for their hometowns.

With the existing round and increase in demand, Bigbasket has also started getting interest from new investors and will resume talks once the travel ban gets lifted, said one of the sources mentioned earlier. “The only question around Bigbasket was what kind of growth will there be in demand, which has been answered now. Grocery is one of the few sectors which has done well even in China during the lockdown and it will not be tough for them to raise capital at a higher valuation now,” said this source.

Bigbasket competes with SoftBank-backed Grofers besides online retail giants like Amazon India and Walmart-owned Flipkart, with Reliance Retail also making an entry into the online delivery market. Queries sent to Alibaba, CDC and Mirae did not immediately elicit a response, while Bigbasket CEO Hari Menon declined to comment. Bigbasket’s conversations for a new round was first reported by Entrackr.

The new round also comes as Bigbasket has been consolidating its position in the space, especially the morning milk delivery market. It has already acquired DailyNinja and is also in talks to buy Gurgaon-based Milkbasket, TOI reported last month.





Source link

Coolwick.com