Report: India’s BigBasket Looks to Raise Funds Toward $3B Valuation

Indian grocery delivery service BigBasket has launched a new funding round that could bring the company’s valuation to $3.5 billion.

According to a report Tuesday (Sept. 27) by The Economic Times, sources say Tata Digital Ltd, a division of Tata Sons, and its investors will likely lead the funding round, which could exceed $200 million.

“The company continues to grow 40% annually as projected earlier internally. This financial year ending March 2023, the company is expected to generate sales of $1.5 billion (net of discounts),” one of the sources said.

Read more: Tata Secures Majority Stake In Indian Online Grocer BigBasket

Tata Sons acquired a majority stake in BigBasket last year, putting the company in the same arena as major players like Amazon and the Walmart-owned Flipkart. The deal, which involved Tata purchasing the stake of China’s Alibaba, was worth $1.3 billion.

The report says the round will help BigBasket expand its offerings and move to quick commerce against rivals such as Swiggy’s Instamart, Zepto and others. One of the sources said BigBasket has grown 40% annually and is expected to generate sales of $1.5 billion for the fiscal year ending March 2023,

BigBasket and Tata were not immediately available for comment Tuesday.

See also: Tata Group Debuts eCommerce App Tata Neu

Earlier this year, Tata Group debuted its eCommerce “super app” Tata Neu, which will offer apparel, air tickets and other services. The app serves as a single platform

The app, called Tata Neu, has been in the works for a few years, with the report calling it a “single platform for the group’s brands.” which include BigBasket as well as Westside fashion, Air Asia tickets, Croma electronics, Taj hotels and 1mg pharmacy.

The app is part of a bid to break into the fast-growing market of super apps as well as to “make the lives of Indian consumers simpler and easier,” said Tata Chairman N. Chandrasekaran.