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Last Updated : Oct 01, 2018 02:06 PM IST | Source: Moneycontrol.com

Paytm Mall may buy majority stake in BigBasket to enter online grocery space

While Paytm denied the reports, people in the know said the company has been looking for a grocery e-tailer to team up with ever since rumours got out that Walmart wanted an e-commerce partner in India

Digital wallet company Paytm’s e-commerce arm, Paytm Mall, may acquire a majority stake in online grocery provider BigBasket, according to a report by Business Standard.

According to the report, Paytm has been looking for an online grocery platform ever since there were rumours in 2017 that Walmart wanted to acquire an e-commerce partner in India.

Chinese e-commerce giant and Paytm backer Alibaba had invested $200 million in BigBasket in February. This had triggered Paytm's interest in purchasing a stake in the online grocery firm, the report suggests.

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The report suggests that negotiations are on the fast track. However, Paytm has been unable to decide on BigBasket's valuation.

“BigBasket wanted a seat on the board of Paytm Mall. It also wants the company to be valued at a premium,” people aware of the development told the newspaper.

A person aware of the development at Paytm told the newspaper, “At the moment Flipkart and Amazon own almost 95 percent of the country’s e-commerce space. If Paytm Mall, or rather Alibaba, wants to elbow its way in, it needs a strong platform. BigBasket is one such entity, more importantly, it is one of the few that deals with fresh produce.”

Walmart-owned Flipkart had also set aside around $400 million for the online grocery segment.

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First Published on Oct 1, 2018 02:06 pm
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