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.
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.LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.