Alibaba & Paytm to invest in BigBasket, Amazon to pick stake in Grofers
Alibaba to invest in BigBasket, Amazon to pick stake in Grofers
The Indian online grocery industry is hotting up as ecommerce biggies rush to grab the largest market share.
As per latest reports, the big players are looking to invest in e-grocery companies and increase their presence. While Alibaba and Paytm Mall are going to invest in BigBasket, Amazon might invest in Grofers.
Paytm Mall and Alibaba to invest $200 million in BigBasket
In July 2017, IOS reported that Paytm may team up with Alibaba to invest $200 million in BigBasket. Now we hear that two additional weeks have been added to the 45-day exclusivity period for the investment talks. This hints that the talks might soon reach an advanced stage.
Commenting on this deal, an investor said,
“BigBasket has been missing is deep-pocketed investors till now, and if this deal goes through they will not have to worry about capital.”
The grocery leader crossed the 5 million customer benchmark this year and process over 50,000 orders daily. If Paytm and Alibaba pour $200 million into the company, then it would help both the sides – marketplaces and grocery etailer, to achieve its business goals.
Amazon shifts focus from BigBasket to Grofers
There were rumors that American ecommerce giant Amazon would invest in BigBasket. But looks like those talks failed because BigBasket has moved to Alibaba and Paytm. And Amazon has moved its focus to home-grown grocery player Grofers.
The online marketplace is looking to pick up a minority stake in the e-grocer’s company by investing in it. The talks have begun but both the parties have refused to confirm the development.
An insider disclosed,
“Both Alibaba and Amazon want to get a toehold in the grocery category, which is why they are not looking to acquire any of the two companies but only back them with capital.”
The Gurgaon-based food etailer changed its business model in February this year, which helped them to improve their monthly sales, repeat purchases and service. The start-up has managed to stay alive, even when other niche grocery players had to leave the battleground.
With Amazon’s support, Grofers would be able to fuel its growth even further without worrying about funds. Amazon is also planning to launch its food business during the upcoming festive season, after getting government’s nod.
Would Flipkart jump in this investment pool too? And will BigBasket accept Paytm and Alibaba’s offer or would it go back to Amazon?
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