BigBasket gets Rs 1,000 crore investment from its holding company

• ByStartupStory     |    April 13, 2022

According to regulatory filings sourced from business intelligence platform Tofler, Tata-owned Innovative Retail Concepts, which owns online grocery platform BigBasket, received a capital infusion of Rs 1,000 crore from holding firm Supermarket Grocery Supplies. On March 31, the purchase was approved. Supermarket Grocery is owned by Tata Digital, which owns about 64% of the company. Following Tata Digital’s acquisition of BigBasket operator, Innovative Retail Concepts became a subsidiary of Supermarket Grocery.

Tata Digital, which has bought new-age businesses such as BigBasket and 1mg, has gotten Rs 5,882 crore from Tata Sons to help it compete with Walmart’s Flipkart, Amazon India, and Reliance Industries’ JioMart. In the rapid commerce area, it now competes with startup Zepto, Swiggy’s Instamart, Dunzo Daily, and Blinkit.

BigBasket is the country’s largest online grocer. In an interview with ET last month, BigBasket CEO Hari Menon said he was bullish on one-hour delivery and that his 20-minute delivery service was growing, but that 80 percent of the company’s gross sales would still come from planned grocery purchases through its core model, where it could deliver products on the same day in most cases.

BigBasket’s gross sales for the previous fiscal year were predicted to be $1.3 billion, with sales expected to increase by 40% annually over the next few years.

It has also set up franchise locations for aided shopping and introduced its Fresho outlets for selling fresh supplies in November last year, in addition to a multi-mode delivery approach. Following a secondary share sale, the company was recently valued at about $2.7 billion.

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