Funding · Commerce & Consumer Brands

Tata Group raises $1.3 billion for BigBasket and 1mg

By Startup Enthusiast · 7 April 2025

What they do

BigBasket delivers groceries online and has pivoted to quick commerce

Tata Group is raising $1 billion for BigBasket and $300 million for 1mg from external investors

The fundraise comes as BigBasket lags behind rivals Blinkit and Zepto in quick commerce

Tata Group is raising $1.3 billion from external investors for its two digital units: BigBasket and 1mg.
BigBasket will get $1 billion and 1mg will get $300 million.
The investment banks Citi and Moelis have been mandated to find investors.
Potential investors include Canadian pension funds, Asian sovereign funds, and Temasek.
Both companies operate under the Tata Digital umbrella.
Tata Sons has expressed displeasure over BigBasket lagging behind Blinkit and Zepto in quick commerce.
Tata Sons chairman N Chandrasekaran is seeking accountability and wants businesses to show profit.

Tata Sons has invested over $2 billion in the Tata Neu superapp, which has performed below expectations.
BigBasket holds only 10% of the quick commerce market, while quick commerce accounts for nearly 80% of its orders.
Some investors in BigBasket are seeking an exit, and an IPO is not immediately likely.
Online pharmacies account for only 3-5% of the total Indian pharmacy market, leaving room for growth.

BigBasket is an online grocery delivery service that offers scheduled and slotted delivery and has pivoted to quick commerce.
1mg is an online pharmacy that also offers diagnostics and healthcare services.
BigBasket's revenue from operations in FY24 was Rs 10,061.9 crore, up 6.27% from the previous year.
BigBasket's losses narrowed by over 20% in FY24.
1mg's revenue from operations in FY24 was Rs 1,968 crore, up 20%.
1mg's losses in FY24 were Rs 313 crore, down 75% from the previous year.
Over 95% of BigBasket's FY24 operating revenue came from groceries.
BigBasket's average order value is Rs 850-860, the highest in online grocery, 20% more than Blinkit and 36% more than Zepto.

BigBasket plans to expand its dark store network to 700 locations by summer 2025, going deeper into tier II, III, and IV towns.
BigBasket is integrating with Croma, 1mg, Carat Lane, and Zudio (Tata stores for electronics, jewellery, and fashion).
BigBasket will start selling prescription drugs from May 2025.
BigBasket merged its BBdaily subscription service into the main BigBasket app.
1mg plans to invest in strengthening its physical presence and quick delivery capabilities.

Tata Group (existing) — Parent company that owns over 65% of BigBasket and approximately 63% of 1mg.
Mirae Asset VC (existing) — Existing investor in BigBasket.
CDC Group (existing) — Existing investor in BigBasket.
Sequoia Capital (existing) — Existing investor in 1mg.
Intel Capital (existing) — Existing investor in 1mg.
Omidyar Network (existing) — Existing investor in 1mg.
Bill & Melinda Gates Foundation (existing) — Existing investor in 1mg.