BigBasket to invest $100 million to strengthen its supply chain
Category: #retail  By Pankaj Singh  Date: 2019-04-29
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BigBasket to invest $100 million to strengthen its supply chain

BigBasket will also reportedly invest to set up BB Instant – its unmanned vending machines – in apartment and office complexes.

Online food and grocery store BigBasket will reportedly pump in $100 million (around INR 698 crore) to improve its supply chain. The company will set up smaller distribution centers and vending machines across its various operating cities.

BigBasket, backed by Alibaba, has reportedly raised $150 million in funding round. CDC Group, Alibaba Group and Mirae Asset-Naver Asia Growth Fund led the funding round.

Reportedly, the latest fund has placed BigBasket in the unicorn club (companies with valuation of $1 billion and above). The online store will use the fund to increase footprints in existing markets with more investments in the first mile, develop new reseller channels and scale-up of supply chain.

Vipul Parekh, co-founder, BigBasket, reportedly stated that the company aims to enable two-hour delivery in top 10 cities, where BigBasket operates, by July this year. The company has 80 smaller and 18 large distribution centers together with its reseller and this will be ramped to 100 smaller and 20 large centers by June this year, he further added.

According to reliable sources, this move will enable BigBasket to ensure quality of fresh produce, dairy products and reduce delivery time. The company has anticipated a capital expenditure of about $100 million this year towards these initiatives.

BigBasket will also reportedly invest to set up BB Instant – its unmanned vending machines – in apartment and office complexes. The risk of vandalism will be lower as the machines will be placed within apartment and office complexes. Customers will be able to use their app for accessing the machine and buy products. The vending machines have been placed at 200 sites in Bengaluru. The company aims to have 2,000 such sites across the 10 large operating cities.

BigBasket will continue to build further on its leadership in the grocery business with these investments, cited sources. The company competes with the rivals such as Amazon.in, Walmart-owned Flipkart and SoftBank-backed Grofers.

 

Source credit: https://www.businesstoday.in/current/corporate/bigbasket-to-pump--100-million-to-boost-supply-chain-by-setting-up-vending-machines/story/341304.html

https://in.finance.yahoo.com/news/bigbasket-invest-100-m-strengthen-123542252.html



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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