Due to the current 21 day lockdown in India, the entire country has been effectively locked down in their respective homes. As such, grocery demands are starker than ever. People stuck in their homes are turning more and more to online grocery markets, which has caused an increase in the net demand.
BigBasket has recently amassed $ 60 million given that its business is on the bloom right now in the nation where there seems a blind race to meet the expanding and soaring grocery needs of people stuck in one place. These people are stuck in their homes for over a fortnight. It is visible how the grocery players in the online market are overwhelmed by the ever-growing demand.
As per CB Insights, BigBasket had already raised around $ 720 million in venture capital and debt financing until now. Among the major participants of the bridge round were Alibaba and other prevailing investors such as Mirae Asset and CDC Group. The first entity that signaled the bridge round was none other than the news outlet Entrackr, which is based in India.
The nationwide lockdown has caused lakhs of businesses to get halted and disrupted. As people work from their homes, the grocery startups have been trying to hire additional delivery staff to cater to the ever-growing demand from new and existing customers. Needless to say, there exists a huge pool of buyers, both existing and new, willing to buy the items they need to be delivered at their doorstep.
There are a number of problems that the service is facing. The first and foremost is the lack of delivery of persons. Due to the lockdown, the country has witnessed reverse migration. Millions of workers went back to their places of origin. Due to the lack of delivery of men and growing demands from consumers, the startup needs to hire more people as well.
The demand has surged up to 5 times to what it earlier was in just a few previous weeks. There was a time when its delivery boys were stopped from operating by the local authorities. In no time, a huge pile of 40,000 items or inventory lay in its warehouses, but it could not get them shipped or delivered.
Just after the lockdown was announced, the startup was forced to face a bizarre situation: warehouses full of supplies and hardly anyone to deliver! Now since the government is ensuring adequate measures to encourage home delivery of essential items, the situation has changed for good.
Vipul Parekh, who is the co-founder of BigBasket, stated that his startup expected to seal bigger financing round in the coming six to nine months.
BigBasket, just the previous week, had partnered with car rental firm Uber, chain stores like Spencer’s Retail, and two-wheeler services Rapido to deliver groceries in many regions across India. Uber, the American firm, had also partnered with Flipkart to deliver essentials to people in parts of Delhi, Mumbai, and Bangalore.
The current partnership will help to run the economy and ensure that Indians do stay at home in keeping with the regulations of the government and guidelines from the authority to curb the spread of COVID 19, as well as forming employment for the drivers. The director of operations and head of cities for Uber India and South Asia, Prabhjeet Singh, had added enthusiastically about the link-up.
A number of companies have turned to deliver groceries to people in the present times. These ambitious companies include PerPule, Box8, NetMeds, Zomato, Meesho, BharatPe, Curefit, NoBroker, DealShare, ShopClues, Dunzo. Again, the biggest players in the list of online grocery services include Flipkart, Amazon, Paytm Mall, JioMart, Snapdeal, Grofers, Swiggy, and of course, BigBasket.