The Abraaj Group, a private equity investing firm operating in the growth markets of Africa, Asia, Latin America, Middle East and Turkey, led a $150 million round of fundraising for BigBasket, one of India’s leading online grocery businesses.
The capital raise saw the entry of new investors such as the International Finance Corporation and Sands Capital and participation from existing investors such as Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital.
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 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 Bengaluru serving 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. Its mobile application has been downloaded by more than a million users.
BigBasket is continuing to deliver strong growth, with a five-fold increase in monthly revenues over the last 18 months, supported by supply chain optimisation and an increased proportion of high margin private label products. Own brand products currently account for 33% of revenue and are projected to reach 40% by the end of this year.
The proceeds of this round of fundraising will be used to finance BigBasket’s growth through further penetration into existing markets, expansion into Tier II cities across India, scaling-up of its recently launched express delivery and specialty store business that caters to top-up and emergency purchases and increasing the product range offered to customers.
Commenting on the investment, Omar Lodhi, partner and head of Asia for The Abraaj Group, says, “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.”
“The strength of BigBasket’s business, which amounts to a transformational experience for its target consumers is evident from the success of this fundraising. As India moves towards organised retailers that offer standardised quality, comfort and speed in the shopping experience, we look forward to guiding BigBasket in its next phase of development,” he adds.
“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. We intend to increase the reach of our just-launched one-hour express delivery service and also launch our marketplace for specialty stores in the coming months. This coupled with an expansion in our range of private label products will create a solid foundation for growth in both revenue and profitability. We are excited that Abraaj has chosen to lead this round and join the high quality investor set that we already have,” states BigBasket co-founder VS Sudhakar.
The key to a successful omnichannel future
A frictionless omnichannel experience which is predictive, value-focused, and highly personalised isFebruary 16, 2023 | By RetailME Bureau
Scandinavian brand J Lindeberg capitalises on the rise of athleisure to expand in the UAE
J Lindeberg was started by Johan Lindeberg in 1990s with the aimSeptember 2, 2022 | By RetailME Bureau
Dubai Duty Free contributes AED20-mn towards UAE’s ‘1 Billion Meals Endowment’ campaign
GMG launches four state-of-the-art food manufacturing factories
Ramadan shopping trends for home and fashion have evolved: REDTAG
UAE-based diversified family business GMG has launched four state-of-the-art manufacturing facilities in
The growth opportunity for food and grocery retailers during the Holy Month
From value, variety and convenience to philanthropy GMG retail stores, including 16
MAGGI from the house of the Nestlé is all set to launch
What does 2023 look like for consumers in Saudi Arabia? A Nielsen
Dubai-based food & grocery retailer Union Coop has launched its discount campaign
Around eight years ago in 2015 a brand called Fruitful Day was
Technology has the potential to transform everyday life in Africa for the
Looking at the regional food retail landscape, one can’t ignore the fundamental
In the early 1970s when large-scale oil exploration activities started, the UAE
Waitrose & Partners UAE has renovated its 45,770 sqft Dubai Mall store
The MENA online grocery market stood at $4.5 billion in 2022 and
Hybrid shopping is the primary buying method for 27% of consumers, found
Regional e-commerce major noon.com has completed the acquisition of the online fashion
Online flowers and gifting destination Floward has raised $156 million in its
Online retail sales surpassed $1 trillion in 2022 for the first time
Earlier this year (in July to be specific) French brand Sandro announced
With plans for the company to go public in the next two
Airport retailer Dubai Duty Free’s total sales on its 39th anniversary topped
Online share in FMCG sales has been growing all over the world,
Online retailer SHEIN has adopted digital thermal transfer printing to accelerate printing
Every year businesses from all over the region, roll up their sleeves
Middle East’s online baby store Mumzworld expands operations to EZDubai, a fully
UAE-based family-owned conglomerate Al Khayyat Investments (AKI) is setting the stage for