BigBasket likely to raise $150 million and valuation may double up. Here’s how it plans to use it

Online grocer BigBasket may raise $110-150 million from several financial and strategic investors.

If BigBasket gets the funding, its valuation may double up which right now stands at $450 million.

The online grocer will use the funding for expanding its warehousing and cold chain facilities.

Recently, BigBasket received a funding of around $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.

Also, Trifecta Capital debt financed BigBasket of about $7 million. BigBasket is also in talks with Tencent and Fosun and other Chinese investors.

ET reported Amazon is also eyeing a strategic stake in BigBasket.

"There is a mismatch in terms of valuations, shareholding and terms of the deal being discussed with Amazon. Amazon India has approached BigBasket for a deal at least twice since 2015," ET quoted sources as saying.

India's online grocery retail market grew 44% year-on-year to $135 million in 2016, and is estimated to grow at the same pace over the next five years, as per Euromonitor.