Alibaba to Invest Millions in Online Grocer BigBasket - Techfunnel
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Alibaba to Invest Millions in Online Grocer BigBasket

Alibaba to Invest Millions in Online Grocer BigBasket

Alibaba, along with Paytm Mall, is ready to buy a 35–40% stake in a grocery delivery startup BigBasket against an investment of $300 million. The deal will give BigBasket a total valuation of $850 million. There will be a primary investment of about $220 million, with $80 million used to obtain shares from remaining investors.

BigBasket is from Bangalore, and the startup had already requested investment from e-commerce’s biggest player Amazon, but they have already acquired U.S. grocer Whole Foods.

This deal results in the departure of chief stakeholders in BigBasket. These are K Ganesh and Meena Ganesh’s GrowthStory and investment firms Ascent Capital, Zodius Capital, and Helion Venture Partners.

BigBasket co-founders Hari Menon, Vipul Parekh, Abhinay Chaudhary, and VS Sudhakar have also shown interest in trading their shares.

The grocer has always been considered a thought-provoking business, even in progressive marketplaces like the U.S. and China. BigBasket, run by Innovative Retail Concepts Pvt, works in a country where growth is tough outside the major cities because of undeveloped logistics and a scarcity of cooled vans and storerooms.

This area of business needs lots of investment outlays, and Amazon has already received government sanctions to devote $500 million into food trade. But, as history suggests many high-profile grocery startups have failed in the last couple of years in India.

Nonetheless, online venders can push high-margin private labels and fresh produce to buyers in the e-commerce sector.

BigBasket is also doing good promotions by featuring Bollywood actor Shahrukh Khan shopping for a home and endorsing in Hindi “Main ek Bigbasket-eer hoon, aur aap?” (I’m a Bigbasket-eer, and you?). The company delivers in more than two dozen Indian cities and offers 18,000 products from over 1,000 brands. Its prevailing supporters embrace the Dubai-based Abraaj Group, as well as Sands Capital.

Aparna Nayak
Aparna Nayak
I have been writing for more than 10 years because of my passion for writing, reading, and sharing it with worldwide audiences. I have published and edited many research papers and white papers in various national and international journals across the internet. I am a writer, technology enthusiast, and social media lover who runs my own blogs and websites.

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