BENGALURU (Reuters) – India’s Tata Group-backed BigBasket has initiated a fresh round of funding that could value the online grocery startup at around $3.5 bln, The Economic Times newspaper reported on Tuesday, citing sources.

Tata Digital Ltd, a unit of Tata Sons, and its investors are likely to lead the new round of funding, which could be as much as $200 million or more, according to three people briefed on the matter who spoke to ET.

In February 2021, Tata Group acquired a 64.3% stake in BigBasket.

BigBasket and Tata Sons did not immediately respond to calls seeking comment.

“The company continues to grow 40% annually as projected earlier internally. This financial year ending March 2023, the company is expected to generate sales of $1.5 billion (net of discounts),” one of the sources told the newspaper.

(Reporting by Yagnoseni Das in Bengaluru; Editing by Dhanya Ann Thoppil)