Amazon Could Acquire BigBasket in the Coming Months
Looking to expand its food delivery network in Indian cities, Amazon is in talks to take over BigBasket.
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Don’t be surprised if Amazon delivery persons end up at your door with your groceries in the coming days. Though Amazon is not jumping into food delivery so soon, they are making a move towards acquiring BigBasket which is run by SuperMarket Grocery Supplies Pvt.
BigBasket is India’s largest online grocer and operates in about 25 cities across the country.
BigBasket was responsible for raising $150 million last year, in a funding round led by Dubai’s Abraaj Group, with extra backing by Bessemer Venture Partners and Helion Venture Partners.
In March, BigBasket raised $7 million in venture debt from Trifecta Capital, to set up new warehouses and strengthen its delivery network. No surprise that Amazon is gearing to gobble up BigBasket.
Amazon CEO Jeff Bezos has vowed to spend up to $5 billion in India in coming years to compete against stiff competition.
Amazon’s success in the country has pushed the two largest domestic e-commerce players, Flipkart and Snapdeal, to join hands. Amazon and BigBasket have not yet agreed to any terms.
Last year, Amazon ventured into online grocery service in India with Amazon Now. It is planning to further invest some $500 million in e-retail of food products in India in the coming years.
Currently, Amazon Now is available in four cities: Hyderabad, Bengaluru, Delhi-NCR and Mumbai. A merger with BigBasket will give them access to at least 20 more cities and the latter’s huge customer base.
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