Paytm Mall looking to acquire a piece of BigBasket for $200 mn
Industry watchers are of the opinion that online grocery will be bigger than current categories – electronics and fashion. Looks likePaytm Mallbelieves the same. Not so long ago, sources from the companystatedthat the etailer would be joining its investor Alibaba in investing $200mn inBigBasket.
Securing its online grocery play
Paytm Mall isexpectedto announce next month its $200 million investment in BigBasket, the big game in Indian online grocery. Despite Paytm’s hesitation to comment on this, sources privy to the matter said that the ecommerce company is looking to purchase 20% of the e-grocery business, through a primary stake sale. It will also be considering a secondary sale, which might further increase its stake in the company.
Sources mentioned that the company gave BigBasket a valuation of $800 million.
One of them close to the ongoing dealsaid,“The deal is complete, there are a few minor things that are left to be done, the announcement is likely going to happen next week. It would give Bigbasket a cash boost it needs for further expansion.”
Going after Amazon and Flipkart
Amazon plans to debut itsonline food retailbusiness this Diwali. In online grocery, the etailer is multiplying sales and even securing repeat customers. It has a 150% growth rate since the past one year in this segment. Online grocery is one of its key segments which is helping Amazon make habitual online shoppers out of its loyal customers.
Flipkart and Paytm are focusing on getting their portfolios right in the meantime. Paytm has its online wallet business to count on when it comes to building a customer base.