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BigBasket gets Rs 100 crore in venture debt from Trifecta Capital

Grocery etailer raised the amount in venture debt to fund working capital needs, expansion.

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Last Updated: Jul 30, 2019, 08.15 AM IST|Original: Jul 30, 2019, 08.15 AM IST
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For fiscal 2018, BigBasket’s revenue went up 35% to Rs 1,605 crore.
Bengaluru: Grocery etailer Big-Basket has raised ₹100 crore in venture debt from Trifecta Capital to fund working capital needs and invest in supply chain and warehousing. The investment comes a few months after Supermarket Grocery Supplies, which owns and runs BigBasket, closed $150 million in funding from Mirae Asset-Naver Asia Growth Fund, Alibaba and CDC Group at a valuation of more than $1billion.

The funds will be used to set up new warehouses, strengthen cold chain, set up facilities to reprocess fruits and vegetables, and scale up its milk subscription business — BB Daily, and the 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 planned capital expenditure of $100 million to build 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.

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