Bolstering its online grocery play, Paytm Mall is likely to announce its $200-million investment in e-grocery major Bigbasket next month.
Paytm Mall was in talks to buy 20 per cent in the e-grocer from the primary stake sale. Sources said that the e-commerce player is likely to buy a stake from secondary sale as well, which might further increase its stake in the company. Paytm Mall declined to comment on the issue.
Sources said that the company gave a rough valuation of $800 million to Bigbasket.
“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,” a source close to the deal said.
With Amazon making rapid strides in the grocery vertical and making sales as well as gaining more repeat customers, everyone from Flipkart to Paytm Mall are trying to get their product portfolio right. Paytm Mall, however, has the benefit of having a 225-million user base of its sister concern Paytm wallet which it can use to gain customers.
Amazon India has seen a 150 per cent growth in the past one year in its grocery segment, on the back of repeat customers and Prime members. Groceries and entertainment are the two key segments for Amazon, which it believes are helping it to make e-commerce a habit among its customers in India and score over competition.