In a back-to-back funding rounds, Bengaluru-based e-grocer BigBasket has raised Rs 52 crore from its four existing investors, including UAE-based Abraaj Basket, Bessemer Venture Partners along with International Finance Corp and Sands Capital, according to documents filed with Registrar of Companies (RoC).
The funding comes on the back of BigBasket raising another Rs 38 crore in two tranches from Helion Ventures and Trifecta Venture a few days ago. Supermarket grocery and Supplies Private Limited that runs the online grocery store issued 80,000 compulsory convertible preference shares to the aforementioned investors at a premium.
The fresh investment comes close on the heels of the $200 million the company is in talks to raise from Paytm E-Commerce limited for a 20 percent stake.
BigBasket raising funds from the existing investors also assume importance as it nears a funding deal with Chinese e-commerce giant Alibaba Group Holding and its Indian associate Paytm E-Commerce, which could be announced in the next two weeks, reported BloombergQuint.
Following BigBasket’s last week fundraising, Gurugram-based online grocer, Grofers India also raised Rs 96 crore from its Singapore-based parent company Grofers International.
E-commerce major, Amazon started online grocery platform Amazon Now last year and currently operates in three cities such as Bengaluru, Hyderabad, and Gurgaon. Meanwhile, Flipkart and Paytm are slated to get into e-grocery soon.
The investors in the country are betting that the sector will turn into a multi-billion dollar category over the next few years. E-grocery sales are forecast to reach $1 billion in 2017, according to market research firm RedSeer Consulting and the country’s food retail market is expected to reach $915 billion (Rs 61 lakh crore) by 2020, says a recent report by India Brand Equity Foundation (IBEF).