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BigBasket secures $50M in funding led by Bessemer

bigbasket

Bangalore-based online grocery store BigBasket, has raised $50 million in a round of funding led by Bessemer Venture Partners at a $400 million valuation, reports iamwire. The report also mentions that the startup has appointed Citigroup to help raise an additional $150 million from a new set of investors.

The startup will use the new round of funding to expand to another 50 Tier II cities. Founded in December 2011 by Fabmall founders VS Sudhakar, Hari Menon, Vipul Parekh, VS Ramesh and Abhinay Choudhari, BigBasket currently operates in Bengaluru, Hyderabad, Chennai, Delhi, Pune and Mumbai. The company had also mentioned earlier this year that it would look to expand to 50 new locations within a year, that would be clustered in groups of 5-6 cities, which would then be served by six central locations.

Prior funding: In September last year, BigBasket 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. The company said then that it would use the funds to expand operations to 10 Indian cities by the end of this year. Prior to this, BigBasket had raised $10 million from Ascent Capital in March 2012. GrowthStory’s Meena and K Ganesh had also invested in this venture.

Delyver acquisition: In June, BigBasket acquired the hyper local delivery startup Delyver in a cash and stock deal for an undisclosed amount. The company had said then that the acquisition would add to its delivery service depth, enabling it to expand its reach in Bangalore, where Delyver is based out of as well.

Grocery store tie up for private label products: In June, BigBasket announced that it was tying up with around 1,800 grocery stores to sell its private label products at their offline stores. This would include grocery products from brands like Royal, Popular and Fresho. The company mentioned that it would soon also launch another private label, a coffee brand, and eventually venture into flavored tea and cookies. Interestingly, the company had mentioned that its private labels account for around 35% of its revenues.

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Competition:

– Last month, ANI Technologies, which operates the online cab booking service Ola, launched a standalone Android application for hyperlocal groceries delivery called Ola Store. The service debuted in Bangalore and at launch, claimed to list over 12,000 products in 13 categories.

– In May, local search listing platform AskMe acquired the online grocery marketplace Bestatlowest.com for and undisclosed amount. Bestatlowest’s co-founders Ankit Jain and Amit Nigam, as well as the company’s 25 member team, were expected to become a part of AskMe.

– Godrej Group’s premium food products retailer Nature’s Basket had acquired Mumbai-based online grocery store Ekstop.com in February this year, and later integrated it into Nature’s Basket’s online store.

– In April, hyperlocal online grocery retailer Grofers acquired mobile grocery startup My Green Box. Similar to the AskMe acquisition, My Green Box’s 15 member team joined Grofers and MyGreen Box founder Varun Khurana was expected to act as the CTO of Grofers.

– Last year in November, Reliance Industries’ retail arm Reliance Retail had launched an e-commerce store called RelianceFreshDirect.com to delivery grocery products in some neighborhoods of Mumbai. The platform sells vegetables, fruits, groceries, dairy products, confectionery products, packaged food and personal care products to the residents of Navi Mumbai, South Mumbai and parts of Thane, similar to Ekstop.

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– Other players in this space include FreshWorld, LocalBanya, Amazon India’s KiranaNow, PepperTap, Delyver.com, BigBasket and SRSGrocery.com among others.

Image source: Flickr user GabriolaCommons

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