The merged company could raise $250 million from Alibaba Group, while SoftBank could infuse additional capital into the online grocery firm
Ahead of a possible battle for market share in the online grocery space with Walmart-owned Flipkart and Amazon, BigBasket and Grofers have revived merger talks, according to a Mint report.
Investors Alibaba Group and SoftBank Group have joined hands for the same, the report said. The proposal involves BigBasket acquiring its rival.
If the deal is sealed, the merged company could raise $250 million from Alibaba Group, while Masayoshi Son-led SoftBank could infuse additional capital, the report said.
While talks with BigBasket are in early stages, Grofers continues to scout for new investors, the report stated.
Moneycontrol could not independently verify the story.
After a failed attempt at venturing into the online groceries space in 2016, Flipkart in August launched a service under the moniker Supermart. The company launched Supermart in Bengaluru and plans to expand the service to other metros by the year-end. The e-tailer will invest $264 million in the service over the next three years.
Following suit, Amazon set-up 15 fulfilment centres in India to assist in delivery of groceries. Flipkart too has set-up a 1.50 lakh square foot centre in Bengaluru. The e-tailer has also employed a delivery fleet for groceries.
In May, Amazon India re-branded its 'Amazon Now' service to 'Prime Now' and invested in a chill chain for products like fresh fruits, vegetables and dairy to consolidate its position in the segment against rivals BigBasket and Grofers.Prime Now, an app-only service, is available to customers in Bengaluru, Mumbai, New Delhi and Hyderabad.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.