Alibaba plans BigBasket investment
China’s Alibaba and its Indian online marketplace investment, Paytm Mall, are in talks to pick up a significant stake in online grocer BigBasket.
The online marketplaces are seeking to invest around $200 million in one of India’s largest online grocer, BigBasket, at a valuation to be decided after due diligence is completed, according to Indian media reports. A estimate figure of around $1 billion has been doing the rounds for BigBasket.
Part of BigBasket’s appeal is its express grocery delivery feature, which lets customers receive grocery deliveries within 60 minutes. Its main competitor is Grofers India, which is backed by SoftBank. Amazon is said to be eyeing a stake in Grofers to counter Alibaba.
Grocery is one of the fastest-growing segments of India’s e-commerce industry. According to eMarketer, India’s retail e-commerce market will be worth $55.3 billion by 2018 — up from $6.1 billion in 2014.
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