BigBasket secures US$150m funding led by South Korea’s Mirae

INDIA – India’s leading grocery retailer, BigBasket has raised US$150 million in funding led by South Korea’s Mirae Asset Management to expand its online platform.

According to ET Retail report, the latest round which was also backed by UK’s development finance institution CDC Group, along with Chinese e-commerce giant Alibaba values BigBasket at close to US$1.2 billion.

With the investment, Mirae which poured US$60 million in the online grocer will hold around 5%, while CDC, which infused $40 million, will hold a 3.5% stake in the company.

Alibaba, owned by one of China’s richest men Jack Ma has invested US$50 million, raising its shareholding to around 26%.

The ET Retail report alluded to the fact that the round of funding comes as the online grocery market is heating up with the potential entry of Reliance Industries in the e-commerce space.

Flipkart India acquired by Walmart for US$16 billion is also pushing into the space after receiving US$201 million from its Singapore-based parent entity Flipkart Private Limited.

Amazon, which is also a major player in the retail industry is embarking on a rebound strategy in a market that is feeling pressure from the recent changes in FDI regulations for eCommerce companies.

Grofers, another Indian online grocery delivery service raised nearly US$60 million in a fresh Series F funding round from Soft Bank to expand its product offering across categories such as grocery, fruits and vegetables.

SoftBank holds around 42% stake in the company and reports has it that the bank looks to invest US$140-150 million in the company with participation from German retail group Metro AG.

BigBasket on the other hand is making serious acquisitions to get a better market share, having purchased three startups, taking 100% stake in two milk ventures RainCan and Morning Cart and a controlling stake in Kwik24.

In February last year, it raised US$300 million funding led by Alibaba Group.

BigBasket reported around 34% increase in its revenues to Rs 1,606 crore (US$231.36 million) in the financial year ending March 2018.

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