SuperMarket Grocery Supplies Pvt. Ltd, which owns online grocer BigBasket, is raising $150 million (about Rs 1,040 crore) in a fresh round of funding led by South Korean firm Mirae Asset.

Mirae Asset will put in $59.9 million in this round, filings with the Registrar of Companies (RoC) show. UK government-owned development financial institution CDC Group Plc will contribute $40 million while China’s Alibaba Group, BigBasket’s largest shareholder, will invest $50 million.

According to report estimates, the investment will increase the Bengaluru-based company’s valuation to $2-2.3 billion.

BigBasket had achieved the unicorn status in February last year when it raised $300 million in its Series E round of funding led by Alibaba. Though BigBasket had crossed $1.6-1.8 billion in valuation by report estimates at the time, a person close to the company had pegged it at $950 million.

Once the latest transaction is completed, Alibaba will hold 26.26% stake in BigBasket, Mirae Asset will own 5.31% stake while CDC’s shareholding will stand at 3.54%.

Private equity firm Abraaj Group is currently the second-largest shareholder in the company with 17.16% stake. BigBasket’s other major shareholders include homegrown private equity firm Ascent Capital and venture capital firms Helion Venture Partners, Sands Capital, Bessemer Venture Partners and International Finance Corporation (IFC).

BigBasket’s big-ticket fundraise comes at a time when the competition in the online grocery space has been heating up. Grofers, its main like-for-like rival, last month secured $60 million in a round led by Japanese conglomerate SoftBank. The Gurugram-based company raised the follow-on funding at a post-money valuation of $424 million.

Meanwhile, Walmart-owned Flipkart and US-headquartered e-commerce giant Amazon have also been aggressively expanding their grocery verticals.

Amazon offers online delivery of groceries and daily essentials through its app Amazon Prime Now, while horizontal e-commerce rival Flipkart has also been getting its hyperlocal service off the ground.

Amazon, which also owns a food processing and retail unit, resumed its grocery service after the online retail giant faced disruption from revised e-commerce norms which kicked in on February 1.

Flipkart CEO Kalyan Krishnamurthy recently stated that the company plans to invest heavily in groceries over the next three years and was exploring investments in or partnerships with offline grocery retailers.

In addition, food-tech unicorn Swiggy diversified its operations with the recent launch of a new hyperlocal service that offers home delivery of groceries and other daily essentials.

BigBasket

BigBasket, which is currently the country’s top grocery e-tailer, operates in 30 cities. clocking Rs 200 crore in terms of monthly run-rate. At the time of the last funding announcement, chief executive Hari Menon had said that he wanted to bring this number to Rs 500 crore by March 2019, which would mean that the company would finish the current financial year with a Rs 6,000-crore exit run rate.

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