E-grocery player Bigbasket has raised $200 million from parent Tata Digital which owns 64% of the company. This is Tata Digital’s fourth round of funding in Bigbasket.
According to a report by the Economic Times, the funding round is expected to value Bigbasket at $3-3.5 billion post-money. During a secondary share sale in March this year, the firm was valued at $2.7 billion.
Bigbasket will utilize the fresh capital to expand the quick commerce vertical BB Now and use it as an expansion strategy for core Bigbasket users rather than enticing existing customers to try the 30-minute delivery service, as per the report.
By launching its quick vertical, BBNow, in December 2021, the company, which has been expanding, will be in direct rivalry with other well-funded companies like Instamart by Swiggy, Zomato’s grocery delivery service through Blinkit, and quick commerce player, Zepto.
With a target of approximately Rs 320 crore by December next year, BB Now is generating gross sales of about Rs 130 crore every month. Through dark stores, it is currently present in more than 24 cities.
BigBasket also plans to expand its core egrocery business from the current 55 cities to around 75.