Chinese ecommerce giant Alibaba and Paytm Mall together is gearing to own more than a third of Indian online grocer BigBasket. According to reports, the former is expected to pay around $300 million to later (Bengaluru-based company) to seal the deal.
The reported deal involving Alibaba, Paytm Mall and BigBasket have been in talks for around six months. Once the deal gets finalized it will make BigBasket a post-money valuation of about $850 million.
The deal is expected to be publicized soon. They are working on to give final shape to the transaction, reported Economic Times citing sources.
Out of total $300 million investment, $220 million will be primary investment while rest $80 million will be used to acquire shares from existing investors. This reported deal was also surfaced in media in July this year.
The latest reported investment by Alibaba in Indian e-commerce sector will scale up rivalry between the world’s two largest e-commerce companies in the country. Global e-commerce players see India as promising market in view of the booming e-retail in the country. They are more eager to increase their presence in India.
Amazon has decided to inject US $ 5 billion in India and expand its business operations to tap growing market size. Amazon is working on a strategy to make Indian consumers fond of e-shopping.