Online grocer BigBasket has raised fresh $40 million from CDC Group, the UK government’s development finance institution, reported LiveMint today.
The investment is part of a bigger round of $150 million that BigBasket is raising at a valuation of $1.2 billion, making it the latest entrant to India’s coveted unicorn club of startups.
The investment in Supermarket Grocery Supplies Pvt. Limited, which owns and operates BigBasket is along with an investment of about $60 million from Korea’s Mirae Global Asset Investments, another new investor as well as existing backer- China’s Alibaba investing $50 million, according to documents filed with the Registrar of Companies (RoC), and media reports.
“We will help the organization support the economic empowerment of its local supplier farmers as it guarantees fair pricing and provides production and quality crop training,” CDC’s statement said. “Our capital will directly contribute to a substantial projected increase in smallholder farmers supplying the Bigbasket brand, thereby boosting local income creation and living standards,” it added.
Although the CDC Group has been investing in India for over 30 years, the BigBasket deal marks CDC’s first deal in the Indian startup ecosystem.
Srini Nagarajan, Managing Director and Head of Asia at CDC India Advisers, said “Key to CDC’s investment approach is creating a meaningful difference in people’s lives. This is done by backing businesses that fuel job creation to support economic empowerment within communities. This is the reason behind CDC’s investment in SGSPL and brand BigBasket”
CDC, which is one of the largest institutional investors in Indian PE funds and with commitments of over $1.7 billion since 2004 CDC has invested over $1.3 billion in India since 1987.
In the Indian renewable space, it has invested $25 million in IDFC Alternatives-backed clean energy firm Green Infra in November 2013. In April 2017, CDC announced an investment of up to $100 million to support the development of renewable energy projects in India.
The above news was first published at LiveMint
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