Bengaluru-based BigBasket is in talks to raise up to $100 million in a fresh funding round led by Singapore’s state investment arm Temasek Holdings to fight new competitors, including JioMart, in the online grocery segment.
According to a report in Entrackr, the talks between the two have been on for the past few weeks, and Temasek could alone inject about $50-70 million in the proposed financing. Other investors including Mirae Asset and CDC Group are, too, expected to join.
According to a Mint report in May, BigBasket was planning to raise around $150-200 million as the coronavirus outbreak and extensive lockdown had boosted online grocery sales in the country. The company had also appointed Goldman Sachs and Morgan Stanley to help with the fundraise.
But, the dynamics of the market are expected to change with the entry of Reliance Industries-owned JioMart in the space. It would entail existing players, including BigBasket, Amazon, and Grofers, to spend more on beefing up operations. JioMart has been scaling orders in the middle of the pandemic and has made deliveries free for all.
BigBasket had raised $50 million debt funding from Chinese e-commerce giant Alibaba Group Holding Ltd this April. The same month, the company had raised $60 million as a part of a new bridge round from existing investors Alibaba, South Korea’s Mirae Asset and UK-development finance institution CDC Group.
Chinese investors are currently having a tough time investing in India with the new foreign direct investment (FDI) norms in place, which makes it mandatory for all Chinese investors to seek government approval before investing in Indian firms. As a result, Chinese investors-backed Indian startups have started to scout for new investors.
BigBasket had attained the unicorn status after it closed a $150-million funding round led by Mirae Asset-Naver Asia Growth Fund, Alibaba, and CDC Group in May last year. Last July, it had also secured Rs 100 crore in debt funding from Trifecta Capital.