Bengaluru-based BigBasket.com, one of the biggest grocery startups in India according to its market share, is now looking to raise around $25 million from International Finance Corporation (IFC). IFC is the private-sector lending arm of the World Bank, which is planning to pick up an undisclosed minority stake in BigBasket.
In August, the company had secured $50 million in a new round of funding led by Bessemer Venture Partners at $400 million valuation. The startup had mandated Citigroup to raise $150 million from a set of new investors. It is backed by investors such as Helion Venture Partners, Ascent Capital and Zodius Capital.
The grocery retailer has its presence in nine cities in India – Bangalore, Mumbai, Hyderabad, Pune, Chennai, Mysore, Kolkata, Ahmedabad and Delhi-NCR. It would exit the current financial year with a revenue run rate of $400 million, a four-fold jump from the $100 million in August. The company’s revenue run rate projection for the next financial year, FY17, is $1 billion.
The company had also extended its operations in an unnamed tier-II city in the last two months, and intends to expand to another 20 tier-II cities over the next two years. It has rolled out a new service where it supplies groceries to mom-and-pop grocers, using its existing supply-chain operations on a daily or weekly basis.
Online grocery delivery industry in India is witnessing a lot of investor interest, and is expected to cross $25 billion by 2020. Its competitors in the niche grocery eCommerce space are ZopNpw, PepperTap and Grofers among others. Just yesterday, an upcoming Bengaluru-based online grocery store, Bucketkart has announced its $150,000 seed round of funding from HNIs. Local Banya, one of BigBasket’s biggest competitors till date has put its operations on a hold.