The Tata Group’s online grocer BigBasket is expected to list its shares within three years after the recent fund raising valued the country's largest online grocer at $3.2 billion, reported Bloomberg on Wednesday.
In an interview, BigBasket's Chief Financial Officer Vipul Parekh said that the Bengaluru headquartered e-commerce company will likely launch an initial public offering in the next 24 to 36 months but was open to raising more private capital before that.
The $200 million Bigbasket is focusing on expanding its pan-India reach. The online grocer announced this week that it had raised capital that will bolster its quick commerce arm and expand its nationwide footprint, as it looks to cement its dominance over the sector giants – Amazon, Reliance Industries, and Flipkart in India’s booming e-commerce market.
Parekh believes that while deploying the fresh funds, there will be an “even split" between capital expansion and marketing in newer territories.
Bigbasket is all set to increase the number of dark stores supplying BB Now – it’s quick commerce format which promises deliveries of household staples within 30 minutes — from about 200 to 300 outlets by March 2023.
At present, Bigbasket is operating in 55 cities. The firm wants to expand to 75 cities in the same period, Parekh stated.
The firm also has a presence in about 450 towns and that could increase by 80 to 100 over the next year, Parekh further said.
Last year, Tata Digital had filed an application with the Competition Commission of India to acquire up to 64.3% of the total share capital in BigBasket’s business to business entity Supermarket Grocery Supplies Private Ltd.
Tata Digital is a wholly-owned subsidiary of Tata Sons, which is the ultimate holding firm of the entities belonging to the Tata Sons group. Tata Digital is involved in the business of providing technology services related to identity and access management, loyalty program, offers and payments.
This article taken by livemint.com
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