Paytm Mall in talks to invest $200mn in BigBasket: Report

Alibaba-backed online marketplace Paytm Mall is in talks to invest $200 million in online grocery retailer BigBasket, reports Economic Times citing two persons in the know of things. Notably, BigBasket had also been in talks with e-commerce giant Amazon for a potential buyout but those discussions probably didn't materialize.

Apparently, Paytm Mall has already started due diligence of the accounts and operations of BigBasket, owned by SuperMarket Grocery Supplies Pvt Ltd. While, BigBasket was valued at about $450 million when it raised capital in March 2016, the online grocer is seeking a pre-money valuation of at least $550 million, the report adds.

BigBasket has been in talks to raise $150 million in fresh capital since the start of the year. While the company has attracted interest from several high-profile investors, including WalMart, Amazon, and Tencent Holdings, nothing seems to have seen through because of valuation differences.

Citing a source, the report said, "The deal will help Paytm Mall strengthen its online-to-offline strategy (using BigBasket's partnerships with corner stores), helping them take on Amazon." Amazon recently got government's approval for a proposed $500 million investment in India’s food retail segment as per which it can open a wholly-owned subsidiary in India to carry out the business of stocking food products and selling them online.

BigBasket has already raised over $290 million in eight rounds of funding, and counts Bessemer Ventures, Dubai’s Abraaj Group, Trifecta Capital, among others as investors. It last raised $150 million from a clutch of investors in March 2016 at a valuation of about $450-500 million.