Bengaluru: Alibaba-sponsored online marketplace Paytm Mall has started dialogues to gain a minority stake in online grocery retailer BigBasket for $200 million.
BigBasket is one of India’s biggest online grocery firm and works in around 25 urban areas in the nation. Prior to March 2017, it raised Rs. 45 crores in venture debt from Trifecta Capital. BigBasket is centred around setting up new warehouses, reinforcing the cold chain and setting up offices for reprocessing of Fruits and Vegetables.
BigBasket was looking for a pre-cash valuation of in any event for $550 million. The company was esteemed at about $450 million when it brought capital up in March 2016.
While the company has pulled in enthusiasm from a few prominent investors, including Wal-Mart Stores Inc., Amazon.com Inc., Tencent Holdings Ltd and Fosun International Ltd, it’s gathering pledges endeavours have been postponed due to valuation contrasts.
Grocery is a major fascination for eCommerce companies. Food and grocery set up together are a Rs 23.03 trillion industry, and just 0.5% of that is online. By 2020, it is required to two-fold to Rs 54.20 trillion, and 2% of which will be online.
The fractional or full obtaining, Paytm Mall will be specifically rivalling Amazon, which is utilising its muscles in the grocery space.
Amazon’s proposition of $500 million interest in retailing of food items in India was cleared on Monday by the government.