Alibaba all set to put $300 million in BigBasket
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Chinese e-commerce giant Alibaba Group Holding plans to invest about US$200 million in India’s online supermarket Bigbasket.
This leads a $280 million funding round and would give it a stake of about 25 per cent in the startup, insiders say. The deal is awaiting approval from the Competition Commission of India.
Based in Bangalore, the grocer has previously had investment discussions with Amazon.com, which was given government approval this year to invest $500 million into food retailing. Founder Jeff Bezos has said he will invest $5 billion in India.
Meanwhile, Alibaba has invested in One97 Communications, which runs digital payment and e-commerce businesses.
Owned by Innovative Retail Concepts, Bigbasket has TV commercials featuring Bollywood actor Shahrukh Khan. The company offers delivery in more than 25 cities and offers 18,000 products from 1000-plus brands.
Questions & Answers
Q.How much will Alibaba invest in BigBasket, and what stake will they receive?
How much will Alibaba invest in BigBasket, and what stake will they receive?
Alibaba plans to invest about US$200 million, leading a $280 million funding round. This investment would give them a stake of approximately 25 per cent in the Indian online supermarket BigBasket.
Q.What is the current status of the investment deal?
What is the current status of the investment deal?
The deal is currently awaiting approval from the Competition Commission of India. Once approved, the funding round can proceed, allowing Alibaba to take its stake in BigBasket.
Q.Has BigBasket previously engaged with other major investors?
Has BigBasket previously engaged with other major investors?
Yes, the Bangalore-based grocer previously held investment discussions with Amazon.com. Amazon was given government approval this year to invest $500 million into food retailing.
Q.What is the reach and product offering of BigBasket?
What is the reach and product offering of BigBasket?
BigBasket offers delivery services in more than 25 cities across India. The company provides a wide range of products, with 18,000 items available from over 1000 brands.
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