BigBasket set to raise $200 million at up to a $3.5 billion valuation

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BigBasket set to raise $200 million at up to $3.5 billion valuation

Online grocer BigBasket has begun the process for a new round of funding likely to value the Tata Digital-owned firm at around $3-3.5 billion, said three people briefed on the matter. BigBasket’s latest financing will likely come from Tata Digital and existing shareholders. While the size of the round hasn’t been finalized, it’s likely to be in the range of $200 million or more, the people said.

Bengaluru-based BigBasket’s holding company Supermarket Grocery, of which Tata owns 62%, filed documents with the Registrar of Companies (RoC) recently about plans to increase the authorized share capital of the firm, typically an indication of a fresh cash infusion on the cards.

BigBasket was valued at $2.7 billion in a secondary transaction where Brand Capital — the strategic investment arm of the Times Group, which also publishes this paper — offloaded part of its stake in the firm. BigBasket’s last primary transaction valuation was $2 billion in May last year, soon after Tata Digital’s majority acquisition of the company.

Company growing at 40% annually

“After 1mg (which got $41 million in funding), BigBasket is also working on a new cash infusion. It will happen at a pre-money valuation of around $3.2-3.3 billion,” said one of the people mentioned above. Epharmacy 1mg turned a unicorn earlier this month, ET reported.

For BigBasket, the estimated bump up in valuation will be around 75% compared with the last primary cash infusion in the company.

Tata Digital and BigBasket CEO Hari Menon didn’t respond to queries.

The infusion comes as BigBasket has been expanding core offerings steadily while venturing into quick commerce against rivals such as Swiggy’s Instamart, Reliance Retail-backed Dunzo, Zepto, and others. Menon has previously told ET that despite newer models, the bulk of grocery sales will come from its scheduled delivery channel, for which it has been reducing delivery times in key cities.

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