BigBasket, run by SuperMarket Grocery Supplies has a presence in about 25 cities across India.

Amazon in preliminary talks to buy Indias largest online grocer BigBasket
Atom M&A Wednesday, June 14, 2017 - 10:56

After reports that online grocery players BigBasket and Grofers are in talks for a possible merger, Economic Times now reports that is in initial talks to buy BigBasket.

This move comes at a time when Amazon is expanding its grocery delivery businesses Amazon Now.

Sources have told ET that the discussions that still at an early stage. However, a BigBasket Spokesperson denied the news to ET.

BigBasket, which is run by SuperMarket Grocery Supplies, is the country’s largest online grocery player with a presence in about 25 cities across India.

Amazon and BigBasket have not yet agreed to any specific terms, said one of the people. BigBasket has also had discussions with private equity firms. BigBasket has been growing steadily with healthy revenues and has even reached breakeven in two cities.

There were reports in April that BigBasket is in talks with Grofers for a possible merger. Mint reported that if the talks go through, SoftBank would participate in a $60-100 million funding round with the merged entity.

Global ecommerce major Amazon has been expanding aggressively in the Indian market. In fact, Amazon CEO Jeff Bezos committed to spend $5 billion in India in the coming years.

Backed by investors like Bessemer Venture Partners and Helion Venture Partners, BigBasket raised $150 million last year in a funding round led by Dubai’s Abraaj Group.

In March, BigBasket raised 450 million rupees ($7 million) in venture debt from Trifecta Capital to set up new warehouses and strengthen its delivery network.

Amazon launched its online grocery service Amazon Now in India last year and is planning major investments to the tune of $500 million in e-retail of food products in India. It also sought approval to invest in food supply and it close to getting an approval from the Department of Industrial Policy and Promotion (DIPP)

Amazon Now is now available in four cities: Hyderabad Bengaluru, Delhi-NCR and Mumbai. And merging with BigBasket will give the ecommerce major access a at least 20 more cities and the latter’s huge customer base.

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