Tata-owned BigBasket eyes IPO by 2025 after $200-mn fundraise at $3.2-bn valuation: Report

Tata-owned online grocery platform BigBasket is reportedly considering an initial public offering (IPO) in the near future. The company, which has seen significant growth in recent years, is said to be in talks with investment banks to explore the possibility of going public.

According to a Bloomberg report, it is expected to list its shares within three years after the recent fundraising valued the country's largest online grocer at $3.2 billion.

BigBasket is seeking to raise around $1 billion through the IPO, which would value the company at around $5 billion. The funds raised through the IPO would be used to support the company's expansion plans, including the launch of new products and services, the report added.

BigBasket was founded in 2011 and has since become one of the leading players in the Indian online grocery market. The company offers a wide range of products, including fresh produce, household essentials, and personal care items, and serves millions of customers across the country.

In recent years, BigBasket has benefited from the shift towards online shopping and delivery amid the COVID-19 pandemic. The company has also made strategic acquisitions, such as the purchase of the e-grocery platform Harvest Gold in 2020, to expand its reach and offerings.

In May 2021, Tata Digital acquired 64.3 per cent of the total share capital of BigBasket's parent company Supermarket Grocery Supplies

The company's IPO is expected to be well-received by investors given its strong performance and growth prospects. The IPO is expected to bring additional attention to the online grocery market in India, which is expected to continue to see significant growth in the coming years.

In an interview, BigBasket's Chief Financial Officer Vipul Parekh told Bloomberg that the Bengaluru headquartered e-commerce company will likely launch an initial public offering in the next 24 to 36 months but was open to raising more private capital before that.

Parekh believes that while deploying the fresh funds, there will be an “even split" between capital expansion and marketing in newer territories.

BigBasket is all set to increase the number of dark stores supplying BB Now – its quick commerce format which promises deliveries of household staples within 30 minutes — from about 200 to 300 outlets by March 2023.