Bangalore-based online grocery retailer BigBasket has raised Rs 200 crore investment in a round led by Helion Ventures and Zodius Capital and participation from existing investors Ascent Capital and LionRock Capital, reports The Times Of India.
This likely includes the $3 million investment from LionRock Capital in April this year. BigBasket co-founder Hari Menon had then mentioned that this investment will be part of its next round.
BigBasket co-founder V S Sudhakar told the publication that they plan to use the investment raised to expand operations to 10 Indian cities by the end of next year. It plans to enter Pune and Delhi NCR in the next six months. BigBasket is currently operational in three cities – Bangalore, Hyderabad and Mumbai.
Sudhakar told TOI’s sister publication The Economic Times that they also plan to use the capital raised to invest in new technologies to improve the existing customer experience.
Prior to this, BigBasket had raised $10 million from Ascent Capital in March 2012. GrowthStory’s Meena and K Ganesh have also invested in this venture.
Started in December 2011 by Fabmall founders VS Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh and Abhinay Choudhari, BigBasket claims to offer around 12,000 products across several categories like fruits & vegetables, groceries and staple provisions, bread & bakery products, toiletries, branded food & non-food products, dairy products, household provisions, confectioneries and frozen food such as Ice Creams and others.
It claims to be registering 5,000 orders per day with an average billing price of Rs 1,600 and expects to generate annual revenues of Rs 250 crore by the end of this fiscal.
Other players in the segment include ZopNow that had raised investment from Times Internet, Accel Partners and Qualcomm Ventures in mid-2012, LocalBanya that had raised undisclosed Series A investment earlier this year and Ekstop that had raised an investment from Unilazer Ventures in return for 25% stake in January this year.
JustDial had also introduced grocery shopping in December last year while HomeShop18 had introduced groceries category last July, although the focus was on packaged non-perishable food products.
Singapore-based online grocery store RedMart had also opened a new development centre in Bangalore earlier this week, however the company had mentioned that it will not be launching its online grocery service in the country as yet.