By Staff writer
Private equity firm invests in BigBasket, an Indian online grocery business; eyes growth in new markets
Dubai-based Abraaj Group has announced that it led a $150 million round of fundraising for BigBasket, an Indian online grocery business.
The funding, which Abraaj has led through one of its Funds, marks the group’s third investment into the global e-commerce market, following its acquisition of stakes in Turkish online retailer Hepsiburada and Dubai-based mobile application taxi service Careem.
Abraaj said in a statement that it has been present in India since 2006 and the partnership with BigBasket marks its third investment in India over the past five months, with previous transactions including Care Hospitals and the development of a gigawatt scale renewable energy platform in partnership with the Aditya Birla Group.
Founded in 2011, BigBasket is headquartered in Bangalore and serves customers across India, currently operating in eight metro cities and 10 Tier II cities.
The company sells over 19,000 products across 1,000 brands, including fruits, vegetables, meat, beverages and personal care products. BigBasket.com averages five million monthly unique visitors and executes over one million orders per month.
BigBasket is continuing to deliver strong growth, with a five-fold increase in monthly revenues over the last 18 months, Abraaj said.
The proceeds of this round of fundraising will be used to finance BigBasket’s growth through further penetration into existing markets, and the scaling-up of its recently launched express delivery and specialty store business.
Omar Lodhi, head of Asia for The Abraaj Group, said: “We are excited about the investment opportunities in India, a key geography for us, where we continue to identify and partner with market leading companies. Abraaj will leverage its strong experience in the consumer sector to enable BigBasket to further enhance its strong domestic position.”
VS Sudhakar, co-founder of Big Basket, added: “We have a unique opportunity to build one of the largest grocery businesses in the country, whether offline or online, and we expect the capital raised in this round to enable us to do just that.”For all the latest banking and finance news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.