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India: Alibaba enters online grocery shopping

 |  December 7, 2017

Alibaba is poised to buy over a third of online grocer BigBasket, according to three people directly aware of the impending deal, for about US$300 million. The transaction will add to a portfolio of strategic investments the Chinese ecommerce giant is building in India as it squares up against Amazon in one of the most dynamic markets for ecommerce.

The deal, which has been in the works for nearly six months, is expected to give the Bengaluru-based company a post-money valuation of about US$850 million. The Alibaba-backed online retailer Paytm Mall is also likely to invest as a part of the US$300-million round depending on the final structure of the deal, the sources said. “The deal is expected to be announced soon.”

The Alibaba and Paytm Mall combine is likely to own around 35-40% stake in BigBasket, which is registered as Supermarket Grocery Supplies. The transaction is expected to involve a primary investment of about US$220 million while US$80 million will be used to acquire shares from existing investors.

Full Content: BGR

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