Big Basket, which is among the biggest hyperlocal grocery start-ups in the country, has raised $60 million as part of a bridge round of funding from investors such as Alibaba.
Currently, Big Basket is racing to increase operations in order to meet the rise in demand for home delivery of essentials amid the coronavirus crisis. The investment comes at a crucial time.
Both Entrackr and TechCrunch report that Big Basket has received a funding of $60 million from Alibaba and other existing investors (which includes CDC Group and Mirae Asset) as part of the bridge round. The investment was materialized a few weeks back in order to help the start-up meet the essential items and groceries, which has been on the rise during the lockdown period.
The surge in order volume
During a conversation with TechCrunch, Vipul Parekh, the co-founder of Big Basket informed that in the past few weeks, the company had witnessed around 5 times increase in order volumes.
To meet the demand, the company needs to make the deliveries but that has not been easy. The main reasons for this are the instances of delivery agents refusing to work due to the pandemic and the interruptions of the authorities responsible for enforcing the lockdown.
Funding will aid scaling operations
Big Basket will be using the fresh round of funding to scale its operations for meeting the surging demand and addressing the issues associated with delivery personnel.
Parekh also said that BB is trying to hire more delivery agents urgently in order to clear its backlog and deliver fresh ones.
The company is valued at over $1.2 billion
The company is said to be valued at more than $1.2 billion, with around $720 million raised in venture capital. Back in 2019, it attained the status of a unicorn.
A source told Entrackr that Big Basket’s “valuation has remained flat in this round. ” The source added that the funding “will help them extend the runway by six months as the company’s monthly burn is $8-10 million.”