​BigBasket eyes to raise $150 million to expand warehousing and cold chain facilities

Online grocery store,BigBasket, is in talks with multiple financial and strategic investors to raise $110-150 million. Thse funds will be used to expand its warehousing and cold chain facilities.

Recently, BigBasket secured nearly $16 million from existing investors including Dubai-based private equity firm Abraaj Capital, Silicon Valley-based venture capital firm Bessemer, US-based investment firm Sands Capital, and the World Bank's International Finance Corp.

The company has raised debt financing of about $7 million from venture debt firm Trifecta Capital to meet its working capital needs. BigBasket is presently holding talks with Chinese investors including WeChat owner Tencent and conglomerate Fosun.

Amazon, US-based online retailer, is also eyeing a strategic stake in BigBasket to boost its daily consumables segment but the talks have not advanced as the online grocer is seeking better financial terms.

Competition is heating up in India's online grocery market with the entry of e-marketplaces such as Amazon India and Flipkart.

Amazon is seeking permission from Indian government invest $500 million in a fully owned venture that will allow it to stock locally produced food items to sell online. Amazon India also plans to open physical stores.