Big Basket is India’s largest online food and grocery store. As it grew, the company planned to expand its warehousing and supply chain infrastructure, as well as ramp up inventory. Its existing source of capital was equity, which came at a capital cost of more than 30%. Further, the founding team wished to avoid increased dilution.
We worked with the Big Basket team to structure a debt instrument that had a moratorium tailored to meet the cash flow needs of the company. We also provided continued support with follow-on investments as the company grew rapidly and its capital requirements increased. True to being a long-term, value added partner, we helped Big Basket partner with financial institutions and banks for additional financing solutions.
As a resultant, the founders were able to retain a higher stake, and Big Basket could finance its capital requirements optimally with an appropriate mix of debt and equity.