BigBasket raises $196 million in a round led by Alibaba Group

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Published: February 2, 2018 11:21:34 AM

The latest funding round also saw the participation of BigBasket’s existing investors. As per the documents filed, Alibaba contributed $145 million to this round with existing investors, Abraaj Group, Sands Capital and IFC adding the rest.

Alibaba invests $146 million in BigBasket

Hyperlocal grocery delivery startup BigBasket has raised a $196 million in Series E round of investment led by Chinese conglomerate Alibaba.

The latest funding round also saw the participation of BigBasket’s existing investors. As per the documents filed, Alibaba contributed $145 million to this round with existing investors, Abraaj Group, Sands Capital and IFC adding the rest.

The company further plans to deploy the funds into building farmer networks, warehouses and delivery infrastructure with a goal to penetrate deeper into the more than two dozen cities it currently operates in, the company stated.

The Bengaluru-based start-up, founded in December 2011 by five entrepreneurs, sells everything from fresh from kitchen mops, spice mixes to every household stuff.

Bigbasket has attracted interest from a wide swath of companies and held initial investment discussions with global retailers Amazon.com Inc. and rival Walmart Inc. before the Chinese e-commerce giant arrived on the scene.

Grocery is a challenging e-commerce segment worldwide and Bigbasket, owned by Innovative Retail Concepts Pvt, operates in a country where expansion is hampered by rudimentary logistics and a shortage of refrigerated trucks and warehouses.

However, BigBasket might also face competition from Flipkart, which announced its grocery segment through Supermart in November last year.

Also, on Wednesday, media reports had stated that US-based offline and online retailer Walmart Stores Inc. was in talks to buy a significant minority stake in Flipkart. Walmart could pick up as much as 15-20% stake in a deal which could finalise by the end of next month.

According to a recently released TechSci report, “Online Grocery Market in India 2011 – 2021”, the online grocery market in India is projected to grow at a CAGR of 55% during 2016 – 2021.

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