BigBasket secures ?100 crore debt investment from Trifecta Capital

BigBasket

Bengaluru: Bengaluru-based grocery delivery startup BigBasket owned and managed by SuperMarket Grocery Supplies Pvt. Ltd has received debt funding worth ?100 crore from venture debt provider Trifecta Capital, according to a company statement on Monday.

The funds will be used to meet the working capital and capital expenditure requirements of the Company including setting up new warehouses, strengthening the cold chain, setting up facilities for reprocessing of fruits and vegetables and for scaling-up of its supply chain for the recently launched milk subscription business – BB Daily and its specialty vending machine business – BB Instant.

The deal announcement comes two months after Bigbasket raised $150 million in a financing round led by South Korea’s Mirae Asset- Naver Asia Growth Fund, UK’s CDC Group, and existing investor Alibaba.

“We have a clearly identified use case for debt. We are present in 26 cities and continue to optimise our supply chain. 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, Co-Founder, SuperMarket Grocery Supplies Pvt. Ltd in a statement.

“We had taken Venture Debt from Trifecta Capital in 2017 and realised that it was a more optimal form of financing for working capital and capex. Venture Debt not only reduces dilution for all shareholders, it reduces cost of capital, improves ROE and expands runway. We recently raised $ 150 million from marquee investors and decided to supplement the equity capital with additional Venture Debt…As we build a credit history with Trifecta Capital, we hope to be able to leverage their Bank/Non-Bank relationships for our future fund requirements”, added Vipul Parekh, CFO & Co-Founder, SuperMarket Grocery Supplies Pvt. Ltd.

Bigbasket was founded in December 2011 by five entrepreneurs including Hari Menon, VS Sudhakar, Vipul Parekh, Abhinay Choudhari, and VS Ramesh. It is one of the largest online food and grocery players in India with operations spread across 26 cities. Bigbasket currently offers over 19,000 products and 3,000 brands across fruits, vegetables, staples, meat, beverages and personal care categories.

Bigbasket is also backed by marquee investors like Bessemer Venture Partners, Helion Ventures, Ascent Capital, Sands Capital, Alibaba, CDC, and Mirae.

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