BigBasket raises INR45 crore capital from venture debt firm Trifecta Capital

BigBasket, the hyperlocal grocery delivery startup, has raised INR45 crore debt from venture debt firm Trifecta Capital to fund the setting up of new warehouses and facilities for reprocessing fruits and vegetables, and for strengthening the cold chain infrastructure.

Hari Menon, co-founder and CEO of BigBasket explained his plans, and stated that “We have a clearly identified use case for debt. We are present in 25 cities and continue to optimize 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. We are in the last leg of a pilot which will ensure that all fruits and vegetables are maintained at constant temperature and thereby improve shelf life of the produce by almost 10 days. This will be done using large-scale equipment such as pre-coolers and ventilators. Funding such capex requirements is best done through debt”.

The startup aims to record revenues of INR1,800-2,000 crore during FY17 with an estimated 45% of it coming from private labels. BigBasket owns private labels in grocery, bakery and food space, and planning to expand the private label offerings to non-food category such as wet wipes, disposable bags and buckets among other items.