[Funding Alert] BigBasket Raises Rs 1,000 cr

Tata Digital owns an around 64 percent stake in Supermarket Grocery. Innovative Retail Concepts was made a subsidiary of Supermarket Grocery after Tata Digital acquired the BigBasket operator.
[Funding Alert] BigBasket Raises Rs 1,000 cr

Tata-owned Innovative Retail Concepts, which runs online grocery platform BigBasket, has received a capital infusion of Rs 1,000 core from holding company Supermarket Grocery Supplies, regulatory filings sourced from business intelligence platform Tofler showed.

The transaction was approved on March 31.

Tata Digital owns an around 64 percent stake in Supermarket Grocery. Innovative Retail Concepts was made a subsidiary of Supermarket Grocery after Tata Digital acquired the BigBasket operator. 

The investment comes at a time when Tata Digital has finally launched its superapp, Tata Neu. BigBasket is one of its key online businesses. Besides the grocery business, BigBasket is providing key logistics infrastructure for e-commerce delivery of other Tata brands too.

The Bengaluru-based firm was planning to offer multiple models of delivery to consumers including one-hour delivery of BB Express besides the recently launched 10-20 minutes delivery service, BB Now.

Tata Digital, which acquired new-age businesses like BigBasket and 1mg, received Rs 5,882 crore from Tata Sons to build its war chest against rivals like Walmart-owned Flipkart, Amazon India, and Reliance Industries' JioMart. It now competes with the likes of upstart Zepto, Swiggy's Instamart, Dunzo Daily, and Blinkit in the quick commerce space.

READ MORE: BigBasket Acquires Kerala- Based Startup Agrima Infotech

BigBasket is the largest online grocer in the country. Hari Menon, Chief Executive said he was bullish on one-hour delivery, and his 20-minute delivery service was also expanding but 80 percent of BigBasket's gross sales would still come from planned grocery purchases through its core model, where it was mostly able to deliver products on the same day.

BigBasket is estimated to have closed the last financial ear with gross sales of $1.3 billion and is expected to grow its sales by 40 percent annually in the next couple of years.

Besides a multi-mode approach to delivery, it has also set up franchise stores for assisted shopping and unveiled its Fresho stores for selling fresh supplies in November last year. The company was recently valued at around $2.7 billion after a secondary share sale.

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