BigBasket, India’s largest online grocery retailer, is raising $280 million from investors. While existing investors Sands Capital and The Abraaj Group are putting in $80 million, the remaining $200 million is coming from new investors Paytm Mall* and China’s Alibaba Group. The $200 million also includes a ‘secondary’ buyout of some of BigBasket’s existing shareholders. As a result, BigBasket’s ‘post money’ valuation will now range between $800-900 million, placing it within striking distance of the coveted ‘unicorn’ tag. Though the deal has been signed off by all the parties involved, a formal announcement and signed agreement might take another fortnight to emerge.
Paytm’s $200-million frequency gamble: BigBasket
What does a $280-million Series E investment into BigBasket say? That grocery is the new black in ecommerce. Expect a three-sided contest between Flipkart, Amazon and Paytm
BigBasket has raised $280 million in a deal led by Paytm and Alibaba for a significant minority stake
The current deal which has a secondary component will see some of the shareholders cashing out
The core founding team will continue to run the business, the chief reason why Amazon-BigBasket deal did not materialise
The deal will add to Paytm's 'acquire and grow' strategy to increase repeat transactions.