Big Basket has raised Rs 45 crores as venture debt from Trifecta Capital. The company intends to use the funds to set up new warehouses, facilities for reprocessing of fruits and vegetables, strengthening its cold chain and other capital expenditure.
BigBasket Co-founder, Hari Menon said,
“We have a clearly identified use case for debt. A significant part of our business is fresh fruits and vegetables, the bulk of which is sourced directly from farms. It is crucial that we maintain the quality right upto the last mile. We are in the last leg of a pilot which will ensure that all fruits and vegetables are maintained at constant temperature and there by improve shelf-life of the produce by almost 10 days. This will be done using large-scale equipment such as pre-coolers and ventilators and finding such capex requirements is best done through debt.”
Big Basket’s move is significant because online juggernaut Amazon has mapped out a major push for the food and grocery segment in India, paralleling its global strategy around this space.Last week we published Amazon wants to invest $500 million in food retail in India. through offline stores.
BigBasket was founded by Hari, V Sudhakar, Vipul, VS Ramesh and Abhinay Choudhari in 2011. The Bengaluru-based company is now present in 25 cities and has over four million registered customers. Bessemer Venture Partners, Helion Venture Partners, and Zodius Capital are among investors in the firm, which has raised $220 million in total funding.
Trifecta Capital Co-Founder Nilesh Kothari,
“Unlike other online grocery businesses, Big Basket is a full-stack player and has already broken even in some of the key markets, like Bengaluru and Hyderabad. Besides, they are backed by the very high quality and deep-pocketed investors. We are excited to be part of their growth story.”
BigBasket is facing tough competition with its competitors like Swiggy, FoodPaanda, etc. Last week Swiggy is in talks with Naspers, Fosun to raise $50 million