Online grocery store BigBasket is on a roll as it raises fresh funding from different sources. BigBasket has raised a capital of close to Rs. 315 crores from Bessemer Venture Partners. In a bid to raise its value to hit $ 1 billion, the grocery company has also instructed Citigroup to raise Rs. 950 crores. It plans to expand its reach to tier – 2 cities with the influx of capital. The online grocer has started the expansion with Mysore.
BigBasket’s investors over the years
IOS had reported how in late 2014, BigBasket raised Rs. 200 crores from Helion and Zodius Fund II. Crunchbase neatly rounds up the investment BigBasket has received. It details the rounds of investments here.
The online grocer has projected an ambitious income of $ 400 million for this financial year. This amount is an improvement of four times its earlier figures, which stand at $ 100 million. The company plans to hit one billion by the next financial year. Says Hari Menon, CEO, “Our revenue run rate projection for the next financial year, FY17, is $1 billion.”
The contenders in the online grocery sphere
Other online marketplaces like Flipkart, Amazon, and Snapdeal have also jumped on the bandwagon of online grocery. Flipkart recently expressed plans to tie-up with Roadrunnr to launch f Qck, a local delivery system.
Hyper local delivery
Etailers have understood the importance of focussing on the hyper local segment. Most of the major players are already on board, or are in the process of getting on.
A Goldman Sachs report also emphasizes the importance of the hyper local segment in Indian online retail. Online grocers certainly have a good scope for growth in India, from what can be seen. This is evident from the statistics and reports. Besides that, the popularity of shopping for bare essentials from the comfort of office or home, for the working youth of India is another strong indicator of the growth of the online grocery industry.