Online grocery retailer BigBasket is reportedly very close to raising $120 million as part of its latest funding round. The round will be led by Sands Capital with participation from International Finance Corporation (IFC), the investment arm of World Bank, and Bessemer Venture Partners which is one of its existing investors. Other parties who have already pumped around $57 million in the startup are Helion Venture Partners, Ascent Capital and Zodius Capital.
BigBasket was valued at about $320 million ahead of the transaction, as per the filings submitted with the Ministry of corporate affairs on November 30, reports ET.
The deal which is expected to be closed in the next two weeks will help BigBasket in the expansion of wholesale trading and boost its supply chain as it faces fierce competition from its competitors. It is currently present in nine Indian cities and plans to expand to over 20 smaller cities over the next two years. Unlike most of the other players, the company keeps its own inventory and manages its own supply chain end to end.
The funding news comes in just a few days after Grofers raised fresh funds of $120 million from Japan’s Softbank Corp. The total funding bagged by Grofers is now close to $165 million which values the company at $300 million. Grofers which started as an O2O logistics player, evolved grocery as its prime vertical and expanded quickly.
These two companies are competing with other grocery firms like Peppertap, Aaramshop etc., and also with grocery retail chains like NatureFresh, BigBazaar etc. which are developing their hybrid models to expand their user base.
Regarding the soaring competition, BigBasket’s Co-Founder said, “At this point in time physical grocery stores would be our biggest competiion and within them the large chains would take preeminence.”
No particular pure play grocery eCommerce player has emerged out as a clear leader at the moment. However, if and when BigBasket closes this round, its valuation will surpass that of Grofers’.