Existing Investors Pump $13 Million As BigBasket Nears Deal With Paytm
BigBasket raises $13 million from Helion Ventures, Abraaj Group and others.
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India’s leading online grocer BigBasket raised $13 million from existing investors as it nears a funding deal with Chinese e-commerce giant Alibaba Group Holding Ltd. and its Indian associate Paytm E-Commerce Pvt Ltd.
The funding round was led by existing investors including Helion Ventures Partners, Abraaj Group, International Finance Corporation and Sands Capital, documents filed with the Registrar of Companies showed.
The fresh investment comes close on the heels of the $200 million the company is in talks to raise from Paytm E-Commerce limited for a 20 percent stake. The deal could be announced in the next two weeks, a person privy to the development told BloombergQuint requesting anonymity as the talks are private.
BigBasket, which has been pushing Indians to shop everyday essentials in about 25 cities via smartphones, is looking to control and aggressively expand its market share amidst growing competition. It's up against the likes of Seattle-based e-commerce giant Amazon, homegrown Flipkart and grocery startup Grofers. India’s nascent online grocery market was estimated to be worth $300 million last year, according to emerging markets researcher RedSeer.
India’s most valuable supermarket giant D-Mart is running a pilot that allows customers to order online, and have everything from staples to shampoos either delivered at neighbourhood kiosks free or at their doorstep for a fee.
BigBasket and Paytm did not respond to an email seeking comments.
Also Read: Can Amazon Become India’s Everything Store?