Don’t get surprised if Amazon delivery boys end up at your door to deliver your BigBasket groceries in the coming days.
The online grocery market in India is likely to boom in the coming years. Keeping this in mind, Amazon is looking forward to acquiring Bigbasket- an online grocery store of India.
Reports say that Amazon is in talks to buy BigBasket and the deal is at an initial stage. They have already entered into a 60-day exclusivity agreement, and until then BigBasket cannot engage with some other party for a possible sale. However, upon asking questions about the same, BigBasket completely denied the report. Amazon has also denied commenting anything on the matter. Thus, no confirmation is made if the report is legit or not.
If the report turns out to be true, it can prove to be really profitable for Amazon. As of now, Bigbasket operates its grocery store in over 25 cities across India.
On the other hand, Amazon has already entered the online grocery market by launching its own grocery app- Amazon Now. However, Amazon has done nothing to promote this app as of now. They are likely to be working to increase their merchant base first and grow their user base next. They currently operate in 4 cities- Delhi-NCR, Mumbai, Hyderabad, and Bengaluru. The acquisition will give them access to 20 more cities and a huge customer base.
The supreme goal is to strengthen further and expand its base in India. The deal is a crucial one. This acquisition might be a strategy to outrun Flipkart in the E-commerce business. The CEO has already said that he is willing to invest $5 Billion in Indian e-commerce sector with at least $500 Million on E-Grocery alone.
BigBasket was valued at $450 million in its last funding round and might be pushing the sale price to $700 million creating a roadblock to the transaction closing.