BigBasket raises Rs 100 Cr debt from Trifecta Capital

0
450

Grocery etailer Bigbasket has raised Rs 100 crore in venture debt from Trifecta Capital to fund its working capital needs and invest in the supply chain, and warehousing.

The investment comes a few months after Supermarket Grocery Supplies, which owns and runs BigBasket, closed $150 million from Mirae Asset-Naver Asia Growth Fund, Alibaba and CDC Group at a valuation of over $1 billion.

The funds will be used to set up new warehouses, strengthen cold chain, set up facilities to reprocess fruits and vegetables and scale-up milk subscription business – BB Daily and vending machine business – BB Instant.

“A significant part of our business is fresh fruits and vegetables, the bulk of which is sourced directly from farms. It is crucial that we maintain the quality right up to the last mile. Funding such capex requirements is best done through debt,” said Hari Menon, cofounder, BigBasket.

BigBasket said it will operationally break even in six months on the back of the company’s planned capital expenditure of $100 million in building infrastructure, along with increased scale, technology optimisation, reduced logistics costs and improved margins from its fresh and wholesale business.

For fiscal 2018, BigBasket’s revenue went up 35% to Rs 1,605 crore, while losses narrowed by 60% to Rs 272 crore, according to regulatory filings.

“Venture Debt not only reduces dilution for all shareholders, it reduces the cost of capital, improves ROE and expands runway,” said Vipul Parekh, CFO and cofounder, BigBasket.

 

Follow Us On Facebook, Twitter & Instagram Please Share Your Stories, Press Release & Articles At [email protected]. To Read More News Daily, Subscribe To Our Push Notification at https://www.inventiva.co.in/
This article is automatically sourced by automatic news feeds through online softwares, Inventiva team has not made any modifications and adjustments in the article and is published as it is after giving due credits to its original source.
READ  Jharkhand extends lockdown till July 31

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.