India-based grocery e-commerce platform BigBasket has entered talks with internet group Tencent and conglomerate Fosun for a prospective funding round sized between $110m and $150m, the Economic Times reported yesterday.
The round would likely value BigBasket at about $1bn, according to people familiar with the negotiations. E-commerce firm Amazon is also in talks with the company, a source said, but they are at a relatively early stage due to the disparity in valuation each party is seeking.
Founded in 2011, BigBasket operates an online grocery that sells more than 18,000 products spanning about 1,000 brands to customers in 21 Indian metropolitan areas. The proceeds from the new round would be used to strengthen its cold chain and warehousing facilities.
Private equity firm Abraaj Group led BigBasket’s last round, a $150m series D in March 2016 that valued it at $450m, and which also featured International Finance Corporation, Sands Capital, Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital.
BigBasket has so far raised approximately $245m in equity funding altogether, and secured $7m in debt financing from Trifecta Capital last week. Its earlier investors include family office LionRock Capital.