CDC, the UK’s development finance institution, has today announced a US$40m equity investment in Supermarket Grocery Supplies Pvt Ltd (“SGSPL”), owner of the BigBasket brand, India’s leading online wholesale grocer. The BigBasket brand enables the employment of thousands of people, and sources directly from over 3,000 local farmers.
CDC’s capital investment will help SGSPL create more impact within the communities that it operates whilst driving further growth in its core business. We are supporting job creation in SGSPL’s supply chain, with a focus on the employment of disadvantaged communities. We will help the organization 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.
Backing this high-growth brand with a sustainable and responsible approach to expansion goes to the heart of CDC’s investment strategy. We are proud to support a business that provides a direct route to market for smallholder farmers, as well as contributes to large-scale employment in India.
India’s online grocery market is expected to grow rapidly over the next few years, fuelled by demand from users attracted to the ease and speed of technology-enabled services. Founded in 2011, SGSPL is headquartered in Bangalore while the BigBasket brand is present in 25 cities and towns across India. Its market leading technology platform will help the business deepen penetration and continue to upgrade the user experience.
In 2012, CDC indirectly invested in SGSPL, through our investment in Ascent India Fund III. More recently, we attracted fresh capital to our renewable energy platform Ayana to accelerate the production of wind generation projects across growth states in India and also invested in affordable housing finance in India.
Srini Nagarajan, Managing Director and Head of Asia at CDC India Advisers, said:
“Key to CDC’s investment approach is creating a meaningful difference in people’s lives. This is done by backing businesses that fuel job creation to support economic empowerment within communities. This is the reason behind CDC’s investment in SGSPL and brand BigBasket. The business’s innovative model progressively addresses these topics, increasing its rate of employment and positively impacting people’s lives such as its network local supplier farmers and workers. CDC and SGSPL will also jointly look into climate friendly initiatives such as implementing sustainable farming techniques.”
Media Contact:
Clare Murray, CDC Group, +44 207 036 4353 cmurray@bii.co.uk
