Bengaluru-based online grocery platform, BigBasket bags $200M from its parent company, Tata Digital. Along with the infusion of funds by Tata Digital, several other existing investors also participated in the funding round. This investment in the e-commerce platform grew its valuation to $3.2 billion.
This funding round led by Tata Digital is not the first round. This infusion of $200M in the BigBasket is the fourth round of funding by Tata Digital. The parent company Tata Digital owns 64% of the company. This round of funding comes after an investment of 1000 crores from its holding company.
The e-commerce platform will utilize the funds to expand its business across Pan-India. Additionally, it will also use the funds to elevate its infrastructure. Furthermore, the platform will invest in its quick commerce product BB Now.
BigBasket is an e-commerce grocery platform that is currently present in 55 cities across India.The company aims to bolster its presence in 75 cities in the coming time and also plans to add subscription-based BB Daily services. BigBasket was launched in 2011 by Hari Menon, V.S Sudhakar, Vipul Parekh, Abhinay Choudhari and V.S Ramesh. Tata Sons acquired 64% stakes in BigBasket through its subsidiary Tata Digital in 2021.
The online grocery platform launched its quick commerce vertical BB Now, in December 2021. BB Now has been performing well in the market. It is currently operating in 24 cities via dark stores. This quick vertical business is a tricky business and it is hard to earn money because of its low average order value. It currently has an average order value of Rs.460.
However, the platform now directly faces competition with Instamart by Swiggy and Blinkit by Zomato.
BigBasket also offers the services of instant meat delivery through Fresho Meats and an online beauty shop via The Beauty store. It also offers offline grocery services through Fresho stores. The company also plans to include Tata’s digital online pharmacy, 1 mg in its platform.
This Bengaluru-based grocery platform intends to grab the $300Bn e-commerce opportunity in India. It also has a vision of opening 100 physical outlets across India by 2023 and 800 stores by 2026. In addition, the platform is also expecting gross sales of $2Bn in 2023.
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