Digital payment solutions provider Paytm and Alibaba team up to buy a stake around 20% in Indian leading online grocer Bigbasket, with the investment amount of $200 million, according to sources.
A person who did not want to be revealed his identity as the negotiations are private, said that Alibaba and Paytm are in a 60-day exclusive pact with Bigbasket and are conducting due diligence. The two could invest as a team or separately, the person said.
Alibaba spokesperson said the company doesnt comment on market speculation. While Paytm also declined to comment on the development and Bigbasket doesnt respond to the email.
Global retailer Amazon.com is also taking interest in investing in Bigbasket to expand its operations in India in online groceries, stated ET old press release. For Alibaba, this investment would add more muscle to compete with its e-commerce rival Amazon and for Paytm it would strengthen its play in e-commerce space.
According to a report byFranchise India, the online grocery market is expected to be Rs 2.7 billion market by 2018-19. Industry watchers believe that grocery would becomebigger than electronics and fashion, categories that currently dominate online purchases.
BigBasket has raised over $200 million from investors including Abraaj Group, Bessemer Venture Partners, Growth story, Helion Venture Partners, IFC and Sands Capital, reported BusinessLine.