This is the first time CDC is investing in an Indian startup whereas it has invested over $1.3 billion in India for almost three decades
The UK-based finance institution CDC Group has committed to BigBasket, one of the newest unicorns of India, and invested $40 million in the grocery delivery company, Mint reported.
This deal pushes BigBasket's valuation to $1.2 billion and is a part of a funding round worth $150 million. The group invested the funds along with Korea's Mirae Global Asset Management, which pumped $60 million into Supermarket Grocery Supplies Pvt Ltd, the parent company of BigBasket. China's Alibaba, with an existing investment of $50 million, was also a part of the funding round.
"We will help the organisation support the economic empowerment of its local supplier farmers as it guarantees fair pricing and provides production and quality crop training. Our capital will directly contribute to a substantial projected increase in smallholder farmers supplying the BigBasket brand, thereby boosting local income creation and living standards," CDC said in a statement.
This is the first time CDC is investing in an Indian startup. It has invested over $1.3 billion in India for almost three decades. It backs projects in the renewable energy sector. For instance, it invested $25 million in a clean energy firm Green Infra, backed by IDFC Alternatives, in 2013. The group announced a $100-million investment in various energy projects in India in 2017.
The group is one of the largest institutional investors in Indian PE funds. It reportedly decided to enter consumer-focused markets at the end of 2018.
CDC Group wants to back businesses that boost job creation and economic development, according to Srini Nagarajan, MD of Asia at CDC India Advisers. This is what drove the group to commit to BigBasket.
BigBasket got a unicorn status after raising $150 million (about Rs 1,040 crore) in a series F funding round led by Alibaba and Mirae Asset.
