Chinese e-tailing giant Alibaba has been reported seeking formal approval Competition Commission of India(CCI) to acquire substantial stakes in the Indian online grocery startup BigBasket.
Earlier in July, Alibaba and SoftBank backed Paytm initiated a discussion to acquire stakes by investing $200 million in the online grocer. Although Paytm and BigBasket declined at that moment about the development.
As soon as it gets the permit Alibaba Group Holding’s Alibaba.com Singapore E-Commerce will carry out the transaction.
As per the source VCCircle this acquisition will help the online grocery firm BigBasket to consolidate its numero uno position and help it compete with rival Amazon, who has committed $500 million towards its food retail unit in the coming 2 years.
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Lately, the online grocery sector has been seeking much attention of the e-commerce giants like Amazon, Flipkart and Paytm. The fight will be to gain a stronghold on this section because it ensures short duration repeated purchases and ensures profit.
The grocery delivery startup was also reportedly in talks with Singapore’s sovereign wealth fund Temasek Holdings and China’s Fosun Group during the same time.
(This development was first reported by VCCircle)