[Funding alert] Bigbasket secures $50M debt to keep up with demand during coronavirus lockdown
As of April 13, Bengaluru-based e-grocery unicorn Bigbasket has raised a debt funding of Rs 379.87 crore from its existing investor and shareholder Alibaba Group.
According to the company's filings with the Registrar of Companies (ROC) at the Ministry of Corporate Affairs (MCA), a total of 4,62,500 Series F-2 compulsorily convertible debentures were allotted to Alibaba Group at a face value of Rs 8,213.51 per share.
On account of the coronavirus outbreak, the online grocery startup is having its fair share of challenges, while attempting to keep up with the surge in demand. Besides, the ongoing pan-India lockdown has led to a disruption in the supply of essential goods, primarily led by a shortage of personnel and delivery vehicles.
The funding has arrived in Bigbasket's cart just in time when it is trying to collaborate with several other network players to meet the demand. In this context, ride-hailing app Uber recently announced a new last-mile delivery service, for which it is partnering with Bigbasket.
Uber will be deploying a mix of UberGo, UberXL, and UberMoto, and will share its technology and vast network of delivery partners to support delivery of essential supplies to consumers' doorsteps. The service will enable Bigbasket to serve its customers in Bengaluru, Hyderabad, Chandigarh, and Noida.
Founded by Abhinay Choudhari, Hari Menon, Vipul Parekh, and VS Sudhakar, Bigbasket has raised a funding of more than $1 billion so far. In 2018, it had raised $150 million in Series F round from South Korea’s Mirae Asset Global Investments, UK government’s development finance institution CDC Group, and the Alibaba Group, joining the elite unicorn club at a valuation of $1.2 billion.
This funding round came only 18 months after the startup raised a whopping $300 million from Sands Capital, International Finance Corporation, Abraaj Group, and Alibaba, in February 2018.
Recently, amid the coronavirus outbreak, the startup said it has witnessed two-fold growth in traffic and revenue. It also witnessed an increase of 15-20 percent in its basket value.
Speaking of delays in the deliveries, it stated,
"We will face some constraints for a few more days because it takes time to build capacity in terms of storage, delivery fleet, and people. Our teams are working hard to streamline this, and we will be back on track very soon."
Edited by Megha Reddy