Online grocery shopping has taken a competitive edge since the entry of JioMart in the equation because of which other companies need to step up their game and raise large fundings to maintain their positions.
BigBasket, one of India's largest e-grocers seems to be close to doing so. The Bengaluru based venture is in talks with Singaporean company Temasek to raise up to $100 million.
“The talks have been on for the past few weeks. Temasek could invest anywhere between $50 to 70 million, Existing investors including Mirae Asset and CDC Group are likely to join.” said one of the sources on condition of anonymity.
“The valuation of BigBasket will not see any significant increment. More or less it would be the same as the last round raised in April,” added a second source.
BigBasket has an expense of around $7-8 million monthly and the last fundraise would expectedly last until December. In May, BigBasket had claimed to reach Rs 650 crore in monthly sales.
Besides grocery, the company also runs subscription commerce platform BB Daily, which has around 300k orders per day.
Early this year, BigBasket had raised $60 million bridge financing from Alibaba and other investors in April though it couldn't use the automatic route to infuse the capital due to tension over the border.
The face of online grocery shopping has changed since the entry of Reliance's JioMart in the fight. JioMart, within a few months of its launch, has emerged to be the largest e-grocer of the country with over 600k orders per day.
Even though the market is large enough for multiple players, survival won't be easy for other companies.