BigBasket to raise $200 million at a valuation of $3.5 billion: Report

Tata Digital-owned grocery firm BigBasket will soon raise $200 million at a valuation of $3-$3.5 million. The financing in the round is likely to come from Tata Digital and other shareholders, a report in Economic Times (ET) said. However, the exact amount of money to be raised has not been finalised yet. 

The online grocery company has filed its documents with the Registrar of Companies (RoC) to increase its authorised share capital. A 62 per cent stake in the company is held by Tata Digital. 

The infusion of fresh capital comes at a time when the company is aiming to expand its core offerings to compete with competitors like Dunzo, Zepto, Swiggy Instamart and others. 

In 2021, BigBasket became the second such firm in the country to generate sales of $1 billion in a year. By the end of FY23, the company is expected to cross the $1.5 billion mark, the ET report added. 

"The company continues to grow 40% annually as projected earlier internally. This financial year ending March 2023, the company is expected to generate sales of $1.5 billion (net of discounts)," the report quoted an official aware of the matter as saying. 

The company has also opened Fresho stores across metro cities to improve its offline presence. 

The report further said that BigBasket's management has a share lock-in until September 30. Until then, they can sell up to 10 per cent of their holdings without Tata Digital's permission.

After September 30, they will need permission to sell their stakes.

Also, BigBasket is likely to launch its IPO within two years.