Beijing (PingWest)—Indian grocery delivery platform BigBasket is in talks to raise $350-400 million funding from investors, including Singapore-based Temasek, hedge fund Tybourne Capital and Generation Investment Management, Economic Times reported, citing people familiar with the matter.
The ongoing talks also include at least $100-150 million in the secondary sale of shares by early investors, said the report.
The e-grocer is expected to see its valuation rise by about 33% after this round of financing, reaching about $2 billion.
Citing sources, Economic Times said that Chinese e-commerce giant Alibaba is not participating in the financing round, which means BigBasket is "looking to diversify its list of investors by getting new backers in."
Alibaba, which is a major investor in the Bengaluru-based firm with around 28 percent stake, is not pumping any fresh capital into the startup in the wake of a larger anti-China sentiment and FDI curbs imposed by the Indian government.
The Chinese e-commerce giant's stake in BigBasket will be reduced to 20% after this round of financing.
BigBasket's business has grown strongly amid the coronavirus pandemic, as more consumers are buying groceries and everyday essentials online.