Abraaj leads $150m round for India’s BigBasket

According to a statement, the round also included participation from International Finance Corporation (IFC), Sands Capital, Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital.

The capital will be used to finance further penetration into existing BigBasket markets, promote an expansion into new cities, increase the product offering and scale-up the company's recently launched express delivery and specialty store businesses. BigBasket's growth plan also includes increasing the proportion of revenue generated by private-label products from 33% to 40% by the end of this year.

Abraaj said BigBasket's revenue increased five-fold over the past 18 months as a result of supply chain optimization and increased marketing of high-margin private-label products. The company was said to be valued at $1 billion last year after a $50 million funding round led by Bessemer, which was in turn followed by a $25 million commitment from IFC.

"The strength of BigBasket's business, which amounts to a transformational experience for its target consumers, is evident from the success of this fundraising," Omar Lodhi, Abraaj's head of Asia said. "As India moves towards organized retailers that offer standardized quality, comfort and speed in the shopping experience, we look forward to guiding BigBasket in its next phase of development."

The deal represents an intensification of Abraaj's focus on India, where the PE firm has made two other financial commitments within the past five months. These include the purchase of CARE Hospitals and a renewable energy investment with Aditya Birla Group. The firm's equity transactions typically range between $20-100 million.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Consumer
• Expansion
• Technology
• India
• The Abraaj Group
• Bessemer Venture Partners
• Helion Ventures
• Zodius Capital
• Ascent Capital
• TMT