With the year 2017 stepping to an end, yet another big deal is on its way in the Indian startup ecosystem. Alibaba along with Paytm Mall is all set to acquire around 35% – 40% stake in hyperlocal grocery delivery startup BigBasket against an investment of $300 Mn.
As per recent reports, the deal is expected to be announced soon and will make BigBasket gain a post-money valuation of $850 Mn. Further, the transaction is expected to involve a primary investment of about $220 Mn while $80 Mn will be used to acquire shares from existing investors.
Also, with this deal, a few of BigBasket’s major investors are also expected to take an exit from the hyperlocal grocery delivery startup. These include K Ganesh and Meena Ganesh’s GrowthStory and investment firms Ascent Capital, Zodius Capital and Helion Venture Partners.
BigBasket co-founders Hari Menon, Vipul Parekh, Abhinay Chaudhary and VS Sudhakar are also likely to sell a portion of their holding in the company.
Alibaba and Paytm Mall have been eyeing to acquire a substantial stake in the online grocery platform since July this year. At that time, it was reported that Paytm had started due diligence on Bigbasket accounts and operations. Also, Alibaba was recently said to have been taking approval of the Competition Commission of India (CCI) to acquire BigBasket.
The grocery delivery startup was also reportedly in talks with Singapore’s sovereign wealth fund Temasek Holdings and China’s Fosun Group during the same time. As per sources close to the development, Fosun’s VC arm Kinzon Capital was looking to make a $20 Mn-$30 Mn co-investment in Bigbasket along with Alibaba and Paytm.