Bengaluru-based bigbasket (BB) raised $200 million in a funding round led by parent Tata Digital. Apart from Tata, other existing investors also participated, The Economic Times reported. 

The latest investment boosted the valuation of the e-commerce platform to $3.2 billion. It surged by 60 per cent compared to the previous capital infusion. 

According to a statement by CEO Hari Menon, the company will utilise these funds to strengthen its infrastructure. Additionally, it wants to expand the grocery business. Currently, BB is running its operations in 55 cities and wants to take it to 75 in the coming time. 

The company will also spend some money to bolster its footprints in the quick commerce section. However, it would not be a standalone business as Menon perceives this segment as tricky to make money due to its lower average order value. 

The e commerce platform is currently having an average order value of Rs 460, similar to the grocery industry.

The Indian start-up ecosystem is going through a rough patch now. Companies are seen to struggle to generate capital at a proper valuation and lay off their employees to keep the business on the profitability track. E commerce player Udaan terminated 350 staff recently. Other players from different tech segments like Byju's and Unacademy also fired employees. 

Considering the situation, experts are anxious that the coming time can be harder. Gaurav Munjal, the CEO of Unacademy, tweeted that he heard 2023 can bring more difficulties than this year. Kalyan Krishnamurthy, the CEO of Flipkart, seconded his thoughts by saying, "The next 12 to 18 months is where we will see a lot of turmoil and volatility, post which I think things will be much better."