Chinese e-tailing giant Alibaba has sought formal approval from the Competition Commission of India to acquire a stake in the country’s top online grocer BigBasket, a person aware of the development told VCCircle.
Alibaba.com Singapore E-Commerce, a subsidiary of Alibaba Group Holding, will infuse the funds into Supermarket Grocery Supplies, a wholesale products supplier that owns the BigBasket brand.
Media reports said in September that Alibaba and homegrown e-wallet company Paytm were set to invest about US$200 million in BigBasket.
Alibaba’s backing will not only help BigBasket consolidate its leadership position, but also give it the much-needed firepower to fight Amazon. The Seattle-based e-tailing giant recently got regulatory approval to set up a retail unit in the country to manufacture private food labels. Amazon has also committed US$500 million over the next two-three years towards this food retail unit.
Full Content: VC Circle
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