Bangalore-based online grocery store BigBasket, has raised Rs $839K (Approx. INR 5.5 Crore) from its existing investor Trifecta Capital. The fresh fund seems to be the extension of its previous funding from the investors. The company had previously raised Rs 45 crore from Trifecta Capital in March this year, to set up new warehouses, strengthening the cold chain and setting up facilities for reprocessing of fruits and vegetables.
In March 2016, BigBasket raised $150 million in a round of funding led by Abraaj Group with participation from International Finance Corporation and Sands Capital among others, and existing investors including Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital.
Amazon had shown interest in BigBasket, however, talks failed owing to differences over valuation. After the failed attempt to invest in Bigbasket, now Amazon is talking to Grofers for a minority stake.
According to a Goldman Sachs report, “The domestic online retail industry is evolving into a hyperlocal, on-demand market. India’s e-commerce market is estimated to grow 15 times to $300 Bn by 2030.”
The Indian online grocery market is estimated to reach $40 Mn (INR 270 Cr) by FY19 growing at a CAGR of 62% from 2016 to 2022. However, the hyperlocal market is ridden with losses, shutdowns, and fluctuating investor interest. For the financial year ending March 2016, BigBasket posted a loss of $11.91 Mn(INR 78 Cr) on revenues of INR $88.56 Mn(580 Cr). Other startups in the grocery segment, apart from BigBasket include ZopNow, Satvacart, Grofers, Godrej Nature’s Basket, and DailyNinja to name a few.