Premji might invest in BigBasket

This market in India is estimated at Rs 500-600 cr; The company is in six cities and is looking to enter two more

Azim Premji, chairman of Wipro Group, is reportedly looking to invest in online grocery firm BigBasket, the segment being seen as the next growth frontier in the Indian e-tail universe.  

PremjiInvest, private arm of Premji’s investment vehicle, is in discussion with Bengaluru-based BigBasket for a possible stake in the company, it is learnt. BigBasket is looking to raise fresh funds worth $50 million (Rs 320 crore) and Premji might lead the new investment round.  The talks have not concluded, sources said.

When asked, Vipul Parekh, co-founder of Big Basket, said, “We are adequately capitalised at present but are in discussions with several people but nothing has been finalised.” He did not comment specifically on Premji‘s interest.

The development comes when e-commerce biggies such as Flipkart, Ola and Paytm are also entering the complex business, riding on high hope of long-term dividends.  ZopNow and Local Baniya are some of the other niche entities operating in the segment.

BigBasket is present in six cities, with two more launches  likely soon.  It raised about Rs 200 crore last September from investors, including Helion Ventures and Zodius Capital.

BigBasket is aiming to close this financial year with a revenue of about Rs 1,000 crore. At present, it has one warehouse in each city that it operates in. It is also looking to hire 3,500 people this year.

Online grocery retail is emerging as one of the fastest growing verticals in the Indian online retailing business, with an array of more companies expected  to  join in the coming weeks, according to sectoral sources.

Amazon and Snapdeal also have a presence in the segment. The former recently launched  an express delivery platform in partnership with traditional stores, Kirana Now. The  American giant is running a pilot project in Bengaluru, it is learnt. Amazon  has been selling some packaged food since late October last year. Delhi-based Snapdeal tied up with gourmet food retailer Nature's Basket (part of Godrej Group) in January to sell its products online but the Kunal Bahl-led  company is yet to  offer on-demand grocery delivery.

FRESH AND RAW

• Azim Premji may invest in online grocery delivery firm BigBasket
• Flipkart and Paytm are also entering the online grocery space
• This market in India is estimated at Rs 500-600 cr
• BigBasket is in six cities and is looking to enter two more
• The company is also looking to hire over 3,500 this year