E-commerce group Alibaba intends to invest roughly $200m in India-based online grocer BigBasket as part of a $280m funding round, Bloomberg has reported, citing people familiar with the negotiations.
The round, which could also include e-commerce and online services provider Paytm E-commerce, is set to value BigBasket at about $800m and the companies are waiting for approval from India’s antirust regulator before the deal is announced.
International Finance Corporation, Abraaj Group, Bessemer Venture Partners and Sands Capital reportedly invested $8m in the company last month, following a $5.8m investment from Helion Ventures and Trifecta Capital revealed in a regulatory filing days before.
BigBasket runs an online platform that sells fresh and packaged food as well as a wide range of oils, seasonings and spices, beverages, everyday household products, cutlery and crockery.
Reports earlier this year suggested both Alibaba and Paytm had been in talks with BigBasket over an investment, while US-based e-commerce firm Amazon was also said to be interested.
The company was valued at $450m as of its last funding, a $150m series D round in March 2016 led by private equity firm Abraaj Group that took its overall equity funding to $245m in addition to $7m in debt financing.
International Finance Corporation Sands Capital, Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital also took part in the series D round, and LionRock Capital is among BigBasket’s early backers.