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 several 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 result, 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. Big Basket benefited from having built out this infrastructure when it saw a massive demand surge during COVID induced lockdowns. The company has now also attracted a large commitment from the Tata group,
and is a clear market leader in the food and grocery segment, serving more than 10 million orders every month.