The Co-Founder and Chief Executive Officer of BigBasket Hari Menon, said the capital raised will be used to increase the shelf life of fruits and vegetables, which is a huge part of the company's business, and is directly sourced from farmers.
Indian e-grocer BigBasket (Supermarket Grocery Supplies) has raised Rs 45 crore to set up new warehouses, improving cold chain infrastructure and for reprocessing facility of fruits and vegetables, reports Mint.
The funds were raised from venture debt firm Trifecta Capital. The online grocery store is in talks with other investors to raise a further Rs 650 crore (USD 100 million).
The Co-Founder and Chief Executive Officer of BigBasket, Hari Menon, said the capital raised will be used to increase the shelf life of fruits and vegetables, which is a huge part of the company's business, and is directly sourced from farmers.
Bigbasket is the country's healthiest online grocery store with USD 220 million in funds from investors like Abraaj Group, Bessemer Venture Partners, Sands Capital, Helion Venture partners and International Finance Corp.
Bigbasket is not the first seasoned startup to opt for venture debt. The likes of Byju's Urban Ladder, Swiggy and Oyo.
Startups are getting more comfortable with venture debt. Not only are they using the funds for working capital requirements, but also for expansion into new verticals.Venture debt of Rs 5-50 crore is usually given per transactions to startups at an interest rate of 15-17 percent. However, venture debt providers only give funds to those who have gone through at least one round of funding from venture capital firms.Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.