Resurfacing a 2017 move: BigBasket won approval for food-retail FDI, plans to set up separate entity

Back in August 2017, BigBasket received government approval to retail food products made in India under the food-retail FDI policy. The e-grocer had to create a separate entity because its current platform also sells non-food household goods; it had indicated investment of about Rs 100 crore.

— FiledFri, 4 Sept, 2026, 06:48 IST·First seen Fri, 4 Sept, 2026, 06:47 IST·Source Financial Express · BrandWagon

What happened

BigBasket received government approval to retail India-made food products under the food-retail FDI policy. It must create a separate entity, as its existing

Key facts

  • 100% FDI permitted for food products made or produced in India
  • BigBasket committed around Rs 100 crore investment
  • Combined proposed investment of $695 million by Grofers, Amazon and BigBasket
  • BigBasket applied for FDI in September 2016

Why this matters

The approval makes BigBasket a more actionable strategic partner or target in food e-grocery, with a distinct entity that may simplify investment, joint ventures, or asset transactions.

What to watch

  • Formal incorporation and operating launch of the separate food-retail subsidiary.
  • Foreign investment announcements, investor identity, valuation and stated use of proceeds.
  • Government clarification on inventory ownership, marketplace/platform sharing, private labels and common logistics.
  • Changes in BigBasket's food-versus-non-food assortment, supplier onboarding and private-label penetration.
  • Similar food-retail FDI approvals or restructuring moves by competing e-grocery and omnichannel retailers.
  • Evidence of increased fulfillment-center, cold-chain or direct-farm procurement investment.
  • Incorporate a separate food-retail entity with distinct governance, books, inventory and supplier contracts.
  • Define the eligible India-made food assortment and segregate non-food household goods from the FDI-backed business.
  • Pursue foreign strategic or institutional funding targeted at food retail, logistics and private-label capacity.
  • Expand direct procurement from domestic farmers, food processors and regional brands to maximize policy-compliant assortment.
  • Use new capital to strengthen cold-chain, micro-fulfillment and higher-frequency fresh-food delivery in major metros.