According to reports, Alibaba plans to invest about $200 million in India’s largest online supermarket, BigBasket as part of a $280 million funding round in the startup.
Apparently Alibaba will be taking a stake of about 25% in Bigbasket according to Bloomberg. Previously, Amazon had reportedly been in talks with BigBasket with the aim of taking a stake in the up and coming Indian grocery store.
The groceries market is fast becoming a key battleground for ecommerce marketplaces. That’s hardly a surprise because it’s such a big chunk of everyday spending. Amazon is making great leaps forward in the area already with its purchase of Whole Foods and the development of Amazon Pantry and Amazon Fresh.
But whilst the online arena is very competitive for groceries, is it truly a threat to the high street? It’s also very interesting to note that Alibaba is taking such a stake in an Indian company where shopping for food is highly localised.
But largely because of the scale of the national spend, and also the size of India’s economy and population of over a billion souls, this is an enticing investment by Alibaba. Even a modest share of the market in Indian groceries could be a very lucrative line.
