You are here: Home » Companies » News
Business Standard

Paytm may team up with Alibaba to invest $200 mn in BigBasket: Sources

The firms are holding preliminary talks and may take a call on the matter in the next few weeks

Press Trust of India  |  New Delhi 

Paytm may team up with Alibaba to invest $200 mn in BigBasket: Sources

Digital payments major may join forces with its investor to pick up a minority stake in online grocery retailer for about $200 million, according to sources.

The are holding preliminary talks and may take a call on the matter in the next few weeks, sources privy to the development said.


They did not wish to be identified as discussions are still on and the deal has not been signed yet.

When contacted declined to comment, while did not respond to emailed queries.

spokesperson said the company doesn't comment on market speculation.

Investing in would help in further strengthening its play in the e-commerce space. For Alibaba, it would add more muscle to take on US-based rival Amazon.

One of the persons familiar with the development said is looking at raising money to fund its expansion plans.

has raised over $200 million from investors including Abraaj Group, Bessemer Venture Partners, Growthstory, Helion Venture Partners, IFC and Sands Capital.

With people becoming comfortable buying even milk and bread online, online grocery segment is projected to witness a strong growth over the next few years.

According to a report by Franchise India, the online grocery market is expected to be Rs 2.7 billion market by 2018-19.

Industry watchers believe that grocery would become bigger than electronics and fashion, categories that currently dominate online purchases.

Grocery delivery is a cash-intensive business as players operate on wafer-thin margins and often end up losing money on delivery. Players like Snapdeal-backed PepperTap has already shut shop.

However, the action is set to return with Amazon $500-million proposal getting approved.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, July 25 2017. 18:45 IST
RECOMMENDED FOR YOU