According to regulatory documents obtained by Tofler, Innovative Retail Concepts, which owns online grocer BigBasket, received Rs 350 crore from holding company Supermarket Grocery Supplies. The investment was accepted on May 24, this year, and the company issued 3.5 crore equity shares.
Analysts predict that the funds will help Tata Digital’s BigBasket compete with Amazon, Walmart’s Flipkart, and Reliance’s JioMart for a share of the online grocery and food market, which is expected to grow to $790 billion by 2024 from $603 billion in 2019.
BigBasket expects its platform’s gross merchandise value (GMV) to increase by 30% to Rs 13,000 crore this fiscal year, owing to the rapid growth of its rapid commerce sector and the expansion of its presence across the country. Hari Menon, BigBasket’s co-founder and CEO, stated that the company intends to increase its offline outlets from 90 to 695 in a year in order to reach 100% of its client base.
It had a GMV of around Rs 10,000 crore in 2021-22. To serve all of its customers, the corporation is expanding its storefronts.
It currently has about 90 locations and plans to have about 695 by the end of the year. This will ensure that we cover all existing customers completely. This fiscal year, the company hopes to expand its footprint to 70 cities, up from about 37 now.
Last May, Tata Digital, a wholly owned subsidiary of Tata Sons, acquired a majority stake in Supermarket Grocery Supplies. According to regulatory filings, it invested $219 million in BigBasket.