Big Basket seeking govt approval for Rs 100cr FDI

Aiming to further broaden its horizons and expand its business, online grocery store BigBasket is seeking government's approval to infuse Rs 100 crore foreign direct investment.

The company, which sells everything from fruits, vegetables to other grocery products online, plans to utilize the funds to strengthen backend infrastructure, increasing collection centres and processing units, according to an ETtech report.

Apparently, the Rs 100 crore investment is sought to be put in by existing investors, including an overseas venture capital fund.

The current policy permits 100 percent foreign direct investment in food products’ trading, including through e-commerce but its subject to approval from the Foreign Investment Promotion Board (FIPB), under the Finance Ministry.

The government is making efforts to double the food processing level of fruits and vegetables, which currently stands at only 10 percent.

Although company officials did not commit on future FDI, sources said that the firm may attract more FDI soon.