26 April, 2018
BigBasket, India’s largest grocery ecommerce market had raised $300 million from Alibaba Group Holding Ltd earlier this year and now is in talks to make an investment in two smaller grocery delivery start-ups DailyNinja and Milkbasket. An informal offer was made to both start-ups earlier this month but the deals haven’t been finalized yet.
Big Basket was founded by CEO Hari Menon, along with V.S. Sudhakar, Vipul Parekh, AbhinayChoudhari and V.S. Ramesh, in December 2011 and currently the market leader in the online grocery segment is operated by Supermarket Grocery Supplies Pvt. Ltd. And with its recent fund-raising activity it has ensured its position. BigBasket had previously raised $150 million from investors such as Sands Capital, International Finance Corp. and Dubai-based private equity investor Abraaj Capital and is easily the most well-funded grocery start-up in the country.
BigBasket is exploring a number of new initiatives, including the launch of a new subscription service, as it looks to expand aggressively and ward off Amazon India and Flipkart, which are trying to quickly expand their grocery businesses.
BigBasket is also strengthening its capabilities in the micro-delivery space –that is delivery of a relatively small number of daily essentials such as dairy products, fresh fruits and vegetables, within a few hours of an order being placed.
Till now, BigBasket has largely catered to customers who typically order large quantities of groceries, FMCG (fast-moving consumer goods) products and household items on a weekly basis. But now it also wants to increase its volume of orders on a daily basis and capture a much bigger share of the grocery delivery business.
DailyNinja has raised roughly $2 million from Sequoia Capital and a bunch of angel investors. Milkbasket has raised about $4 million from Unilever Ventures, Blume Ventures and others.