BigBasket, the Tata Digital-owned e-grocery company, has recently secured $200 million in funding, raising its valuation to $3.2 billion. This marks a 60% increase in valuation since the company's last primary funding round.
CEO Hari Menon told Economic Times that the additional capital will be used to strengthen the company's infrastructure and marketing efforts, as well as to further invest in its quick commerce product, BB Now.
Menon also noted that the standalone core grocery business is expected to reach operating profitability by Q3 of the next fiscal year, with an estimated gross sales of $1.5 billion in the current fiscal year and a target of $2 billion in gross sales for the following year.
In addition to expanding its core grocery business to 75 cities, up from the current count of 55 cities, BigBasket plans to incorporate other services next year, such as its subscription-based BB Daily and Tata Digital's e-pharmacy offering, 1mg into its main app.
The funding saw participation from Tata Digital, as well as other investors including Mirae Asset and the UK's CDC.