BigBasket, India-Based Online Grocery Company, Secures $200 Million Funding
BigBasket, an Indian online grocery company owned by Tata Sons, has recently secured $200 million in funding at a valuation of $3.2 billion. The company was valued at $2.7 billion following a secondary share offering in March.
Foundation and Expansion
BigBasket was founded in 2011 in Bengaluru by CEO Hari Menon and four other partners. In 2021, Tata Sons purchased the company through its subsidiary Tata Digital. In addition to its focus on online grocery, BigBasket has also expanded into rapid commerce with BB Now and subscription-based services with BB Daily. The platform also offers offline grocery services through Fresho Stores and includes Fresho Meats, an instant meat delivery service, and The Beauty Store, an online beauty shop. The company aims to include a “lower average order value.”
Competition in the Quick-Commerce Market
Though BigBasket primarily focuses on online grocery, it was a late entrant in the quick-commerce market, with competitors Zepto, Zomato’s Blinkit, and Swiggy Instamart accounting for 80% of the overall market.
Plans for Funding
The funding will be used to strengthen marketing and infrastructure for the expansion of the core grocery business. BigBasket plans to expand its core business to more Tier 2 markets and invest in warehouses and other infrastructure. The company also aims to increase the number of its brick-and-mortar Fresho stores from 25 to 100. In addition, CEO Menon stated that Tata’s 1mg will soon be incorporated into the BigBasket app as the pharmacy is a “natural extension.”
BigBasket has recently secured $200 million in funding at a valuation of $3.2 billion. The company plans to use the funding to expand its core business, invest in infrastructure, and increase the number of its Fresho stores. In addition, Tata’s 1mg will soon be integrated into the BigBasket app.