Online grocery startup BigBasket, has raised a fresh round of $150 million from existing investor Alibaba and a new investor from South Korea, Mirae Asset Global Investments, reports Economic Times. The latter has put in $55.9 million while Alibaba’s share is $50 million. Another $40 million has come from the CDC Group, an investment company owned by the UK Government.
The highlight of this round of fund-raising by BigBasket is that it takes the valuation of the startup beyond the $1 billion making it the fresh one to join this elite club in the Indian context. All these details have emerged from the returns the company has filed with the regulatory authorities recently.
The shareholding pattern in BigBasket sees Alibaba as the largest shareholder, with about 24% followed by Abraaj Group at 16.2%, Ascent Capital holding 15.5% and founders and promoters retaining 11% stake in the company.
It is reported that the freshly inducted funds may be deployed by the company in expanding its footprint within the country and reach the hitherto un-serviced markets. BigBasket might also want to hold on to the leadership position it currently enjoys amidst threats from giants like Amazon and Flipkart, apart from Grofers, another startup in the same space.
Observers feel BigBasket has gained the edge thanks to the way it has managed the integration of its supply chain system, particularly in the challenging product lines like meat, fresh fruits and vegetables. The private labels it has developed is also helping it offer better pricing to its customers.
From the financial performance viewpoint, BigBasket has been steadily trying to scale up the revenues while cutting down the losses and has been fairly successful at it.
One the product offerings, it has added new categories like beauty, kitchen and home essentials. There is also the loyalty programme called BBStar, which it had advertised widely with its brand ambassador Shah Rukh Khan.