BigBasket raises $150 million to grow specialty store operations
This year we have witnessed Hyperlocal delivery start-ups such asGrofersandPeppertap, reduce the number of cities they operate in to reduce bring down costs and focus on more profitable cities. This was a sign of things to come. WhileAmazon re-launched its grocery service‘KiranaNow’,Flipkart pulled the plug on its ‘Nearby’Grocery app, despite opening a dedicatedgourmet and nutrition categoryon its site. Even Cab aggregator,Ola closed the dooron its grocery delivery service.
As the online grocery industry seems to be going through a rough patch, e-grocer,BigBasketcontinues to attract fresh funding. This time it has reportedly raised $150 million from The Abraaj Group (Dubai),International Finance Corporationand Sands Capital.
The following existing angels also added to the corpus:
Bessemer Venture Partners
BigBasket will use the latest injection of cash to:
Build presence in existing markets
Broaden reach into Tier-II cities
Grow its express delivery & specialty store operations
Increase its product range
Recent reports suggest that BigBasket’s sales revenue when compared to the previous year more than doubled,from Rs. 69.72 crore to Rs. 170.24 crore, although losses also tripled during the same period. BigBasket expects its revenueto cross $1 billion by 2018. If it continues to receive solid funding, there is no reason why it should’nt.