Chinese e-tailing giant Alibaba has sought formal approval from the Competition Commission of India to acquire a stake in the country’s top online grocer BigBasket, it is reported.
Alibaba.com Singapore E-Commerce Pvt. Ltd, a subsidiary of Alibaba Group Holding Ltd, will infuse the funds into Supermarket Grocery Supplies Pvt. Ltd, a wholesale products supplier that owns the BigBasket brand.
Media reports have said that in September last Alibaba and homegrown e-wallet company Paytm were set to invest about $200 million (Rs 1,277 crore) in BigBasket.
It is also reported that the e-grocer was raising $280 million as part of a Series E round that also saw participation from existing investors Sands Capital and The Abraaj Group.
Alibaba’s backing will not only help BigBasket consolidate its numero uno position but also give it the much-needed firepower to fight Amazon.
The Seattle-based e-tailing giant recently got regulatory approval to set up a retail unit in the country to manufacture private food labels. Amazon has also committed $500 million over the next two-three years towards this food retail unit.
Though Paytm may not invest in BigBasket as earlier speculated, the investment will indirectly give it a toehold in online grocery, besides keeping competition at bay.
