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Online supermarket BigBasket, now acquired by Tata Group, has witnessed a quantum leap in evaluation from $2 billion to $2.7 billion in a secondary share sale recently. However, Tata Digital and other investors feel that the company is worth more than the above valuation because of its sales and growth projections. They stated that the firm is worth $4 - $5 billion.
The premier Indian Egrocer company has seen the increase in evaluation consequent to the sale of the stake in the firm by Brand Capital, the strategic investment arm of the Times Group, to Tata Digital. Now Tata Digital has requisitioned additional cash from the holding company Tata Sons to drive its ambitious growth plans, according to a recent news report.
The company has projected annual growth of at least 40% in its gross sale in the next couple of years. Tata Digital acquired a majority stake in BigBasket at a valuation of around $1.8 billion. Later it infused $200 million into the firm, valuing it at $2 billion.
BigBasket has now entered the quick commerce arena, with its primary competitor being BlinkIt. Formerly Grofers, BlinkIt recently transformed into a quick commerce platform and closed an additional $100 million funding. The funds are being raised via convertible notes from Zomato, and will later be converted into equity.
This fundraiser is part of a larger $400 million funding Blinkit is expecting to raise from Zomato and other investors. The current investment is in addition to the $100 million that Zomato invested in the company and its wholesale entity last year, powering the quick commerce startup’s valuation to $1 billion.
Market volatility has hit Zomato, and hence Blinkit’s planned fundraising. The funding is expected to be negotiated again with fresh terms. To go ahead with its plans, Blinkit, for now, has raised the first tranche of $100 million from Zomato. Whether BigBasket will be able to grab the quick commerce market share from the rapidly growing startup is yet to be seen.