Alibaba leads $300m round for India's Bigbasket

Existing investors Abraaj Group, International Finance Corporation (IFC), and Sands Capital also participated in the round. Hari Menon, Bigbasket’s co-founder and CEO, told Bloomberg that Alibaba contributed about 75% of the capital in the round. The investment brings the company’s valuation to around $950 million.

Bigbasket will primarily use the new capital to improve supplier relationships and upgrade its warehouse and delivery infrastructure. The company is currently focused on improving performance in the 27 cities where it operates, rather than expanding its geographical range.

Bigbasket was founded in 2011 and operates on an inventory-led model, sourcing products directly from farmers and manufacturers and delivering from central collection points. Its product offering includes fresh and packaged foods, as well as home goods such as cleaning supplies.

Early investors in Bigbasket included domestic VC firms such as Helion Venture Partners and Zodius Capital, which led a INR2 billion ($32.8 million) Series B round in 2014, along with global investors such as Bessemer Venture Partners. The company’s largest funding round to date was a $150 million commitment in 2016 led by Abraaj.

Bigbasket’s biggest competitor is Grofers, which originally pursued a hyperlocal model focused on delivering small items from local shops to consumers. The high operational costs associated with the hyperlocal model proved a significant barrier to attaining profitability, leading Grofers to change to an inventory-led model in 2016.

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• Topics
• South Asia
• Consumer
• Technology
• Expansion
• India
• TMT
• Alibaba Group
• The Abraaj Group
• IFC
• Sands Capital