Bangalore-based online grocery store BigBasket, has raised Rs 5.5 Crore from its existing investor Trifecta Capital, reports Financial Express. The fresh fund seems to be the extension of its previous funding from the investors. The company had previously raised Rs 45 crore from Trifecta Capital in March this year, to meet the capex requirements of the company, including setting up new warehouses, strengthening the cold chain and setting up facilities for reprocessing of fruits and vegetables.
MediaNama has reached out to BigBasket for statement on this development, we will update as soon as we hear back from them.
BigBasket’s seems to be ramping up to compete with ecommerce biggies such as Flipkart and Amazon, which are eyeing online grocery segment in a big way.
Flipkart reportedly decided to give online grocery delivery another try in July this year, as the company launched a grocery delivery service in Bangalore on a pilot basis. Flipkart had earlier shut down its earlier service Flipkart Nearby in February last year, nearly 5 months after its launch.
Amazon recently received government of India’s approval to invest $500 million in the food retail segment. In April this year, the Department of Industrial Policy and Promotion (DIPP) had also approved Amazon’s plans to stock and sell local grocery produce online. Amazon operates its grocery service online via Amazon Pantry, a service which delivers household items and grocery with presence in 34 cities . On the other hand, the grocery delivery service KiranaNow (Amazon Now), which was launched in Bengaluru last year, is currently available in Delhi-NCR, Mumbai, Bangalore and Hyderabad.
Fatalities: The online grocery delivery segment has slowly been faltering with multiple companies pulling out entirely, or slowing down operations.
-In February 2016, PepperTap had shut down operations in six cities: Mumbai, Kolkata, Chennai, Ahmedabad, Chandigarh, and Jaipur. It laid off about 400 delivery personnel. It has raised $51.2 million in 4 rounds of funding from at least 8 investors and acquired Bangalore-based hyper-local grocery delivery service Jiffstore.
-In January 2016, Grofers shut down its services in 9 cities citing low acceptance. The company had expanded to these Tier II cities, including Ludhiana, Bhopal, Kochi, Coimbatore and Visakhapatnam in September 2015. Grofers, however, relaunched operations in Ludhiana, Bhopal and Kochi along with several other cities in January 2017 and is currently live in 26 cities.
Big Basket’s Previous Fundings
In March 2016, BigBasket raised $150 million in a round of funding led by Abraaj Group with participation from International Finance Corporation and Sands Capital among others, and existing investors including Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital.
In August 2015, the company raised $50 million in a round of funding from Bessemer in August last year. At the time, the startup appointed Citigroup to help raise an additional $150 million from a new set of investors. In September 2014, BigBasket raised Rs 200 crore investment. Prior to that, BigBasket had raised $10 million from Ascent Capital in March 2012. GrowthStory’s Meena and K Ganesh had also invested in this venture.