As
per Big Basket News, Online grocer
Bigbasket has crossed an annualized gross sale run rate of $1 billion for the
first time in May, riding on strong consumer demand for grocery and essentials
because of the Covid-19 pandemic.
Grofers
will become the second sector-focused online retailer after fashion portal
Myntra, and horizontal e-tailers like Flipkart and Amazon India that sell all
goods, to cross the billion-dollar sales mark. Myntra incorporates a gross
merchandise value (GMV) of over $2 billion.
According
to Bigbasket News, It's co-founder,
and CEO Hari Menon told TOI it clocked Rs 650 crore, or almost $90 million of
sales, after discounts, in May which the sales growth trend remains steady in
June too. The Alibaba-backed company is additionally looking to boost $250-300
million from new and existing investors, eyeing a valuation within the range of
$1.5-2 billion.
The
aim is to shore a monetary fund to fight the Reliance Industries-Facebook
combine and diversify the investor base. Menon confirmed he had appointed
Morgan Stanley and Goldman Sachs for the fund-raise, which are within the
initial stages of the method, as mentioned by Big Basket news.
“We
grew 35% on a month-on-month basis in April, so the subsequent two months we
grew roughly about 18% and 20%. It (the demand) is holding rather well.
Including BB Daily, we are clocking 3.5 lakh orders, which was around 2.2 lakh
orders each day (before pandemic),” mentioned by Menon to the Big Basket News. BB Daily may be a
separate micro-delivery platform of Bigbasket, which delivers milk, bread and
eggs on a subscription basis.
The
product mix has also changed on Bigbasket. In value terms, fruits and
vegetables — which wanted to be 16-18% of its business — have now jumped to
20-22%. “The object (business) got advanced by 12-15 months. Operational
profitability may be a few months away,” he added. Menon said the expansion
momentum will continue, supported the sales expansion of the last four months.
While,
Another instance within the e-retail segment - in line with Grofers News,
Grofers
is heading in the right direction to rack up $60-$70 million in new funding,
sources told ET, because the online grocer registers a significant demand surge
with more Indians shopping online for essentials amid a continued nationwide
lockdown to stem the spread of the Covid-19 virus outbreak.
Separately,
it's projecting Ebdita-level profitability in May. Ebdita refers to a company's
earnings before interest, depreciation, tax and amortization, and maybe a
widely used measure of profitability.
Existing
investors SoftBank Vision Fund et al. including Apoletto Asia, Sequoia Capital
and Tiger Global are expected to back the web grocery retailer. The discussions
are, however, not yet final, in line with Grofers
News.
Despite
a rising in business, the capital raising is going to be at a valuation of
around $650 million, not much changed from when it raised money previously, as
per Grofers News. The funding comes
at a time when the company’s sales and margins have doubled, compared to the
identical period last year.
Stay
updated with more Grofers news and Big Basket News on Entrackr.
