E-commerce company Paytm Mall is set to invest $200m in India-based grocery e-commerce platform BigBasket next month, Business Standard reported on Saturday.
Previous reports suggested Paytm Mall will acquire a stake of about 20% in BigBasket. Sources told Business Standard it will make a primary investment in the company at a valuation of about $800m, and will also acquire shares through a secondary transaction.
A source close to the deal said: “The deal is complete, there are a few minor things that are left to be done, the announcement is likely going to happen next week. It would give BigBasket a cash boost it needs for further expansion.”
E-commerce firm Alibaba will also take part in the round, people familiar with development told VCCircle today, confirming that it will value BigBasket at $200m pre-money.
BigBasket offers more than 18,000 products through its online platform, spanning more than 1,000 brands. It operates in 21 Indian cities and can deliver orders to customers within a 60-minute timeframe.
Paytm Mall would be able to boost its presence in India’s e-commerce market through the deal and could also offer access to its sister company, mobile payment platform Paytm.
BigBasket has so far raised $245m in equity financing and $7m in debt, and was valued at $450m as of a $150m series D round led by private equity firm Abraaj Group in March 2016.
The series D round also included International Finance Corporation, the World Bank’s private investment arm, as well as Sands Capital, Bessemer Venture Partners, Helion Advisors, Zodius Capital and Ascent Capital. LionRock Capital was an earlier investor in the company.