Bigbasket has raised $150 Million from Alibaba group, Mirae-Naver, and British development finance institution CDC.
Alibaba is focusing to enable the growth of local Indian firms like Supermarket.
Bigbasket plans to have 45% overall sales from its private labels whose contribution is now approx 34%.
Grocery giant BigBasket’s owner Supermarket Grocery Supplies Ltd. has raised $150 Million from Chinese e-tail behemoth Alibaba group, South Korean Asset financial group Mirae-Naver and British development finance institution CDC. The funding round is led by Mirae Asset-Naver Asia Growth Fund through one of its funds. This investment is Mirae-Naver’s highest investment in any of the startups in India. Mirae Asset-Naver Asia Growth Fund is a joint venture between Naver Corporation, South Korea’s leading Internet Company, and Seoul-based Mirae Financial Group.
Grocery behemoth is planning to use the raised funds in scaling-up of its supply chain and for building new reseller channels, scaling-up of its supply chain and enhance the growth of the company through penetration into markets with more investment in the first mile.
VS Sudhakar, Big Basket’s founder said on concerning the funding round, “We are re-engineering our supply chain to permit for faster delivery to our resellers and to shorten the time from farm to our customers. We are also scaling up the back end supply chain for our new businesses BB Daily that delivers fresh milk and other fresh products and BB Instant that builds a network of vending machines. This, coupled with an expansion in our range of private label products, will craft a solid foundation for growth in both revenue and profitability.”
Alibaba group also led the previous Series E round of Supermarket in 2017 and participated in this funding round too. Alibaba is focusing to enable the growth of local Indian firms like Supermarket that are re-defining segments and consumer behavior as more users go online across the country.
London-based CDC, which has been investing in India over the last three decades, has committed to invest $1.7 billion as an investor in about 300 firms across the country. Bigbasket came into 201 by Vipul Prakash1 and is functional in 25 cities of India. It plans to enable two-hour delivery in top 10 cities in which it is going to be functional by July this year. For that, the company has been investing in strengthening its distribution centers. The firm has 18 large and 80 smaller distribution centers together with our re-sellers and this will be ramped up to 20 large and 100 smaller ones by June this year. Bigbasket is trying to reduce delivery time and offer the quality of dairy and fresh produce to its customers.
Bigbasket has elaborated its business by adding more categories including beauty and home essential products. The firm also introduced BBstar a subscription plan model to offer faster delivery and discount to its customers. It has also acquired Pune-based milk subscription platform RainCan and Bengaluru-based micro-delivery startup Morning Cart.
Bigbasket is also focusing on its in-house brand Fresho for idli, dosa, and Vegetables; Royal and popular for staples and Tasties for snacks. This move has made Bigbasket self-dependent and it plans to have 45% overall sales from its private labels whose contribution is now approx 34%. The company has acquired milk delivery startups Morning Cart and Rain Can make an entry into micro delivery space. Bigbasket is trying to become a Unicorn in food e-tailer services.
Stay tuned with us for the latest updates!
- Oorja Raises $1.5 Million in Pre-Series A Funding - September 30, 2023
- Dream11 Challenges Rs 18,000 Crore GST Notices, Expects More Amounting to Rs 1 Lakh Crore for Gaming Companies - September 29, 2023
- Startups Create Task Forces to Challenge Google on Billing - September 29, 2023