It is being speculated that Paytm Mall has started the due diligence of the accounts and also the operations of BigBasket. But it being said that Paytm Mall offered the $200 million amount before the due diligence started.
Meanwhile, Paytm denied any investment talks.
Paytm Mall to invest $200 million in BigBasket
Stake in BigBasket, a strategic plan of Paytm Mall: Sources
Unidentified sources claim that a deal for a majority stake in BigBasket could be the first step before Paytm Mall bought the e-grocery. BigBasket was valued at $450 million in 2016.
It said that this stake could be a precursor to an acquisition.
Another source claimed that Paytm Mall was taking Amazon's plans head-on.
Paytm, BigBasket are pawns of Alibaba and Amazon?
While Amazon has committed $5 billion to build its India operations, Alibaba (through Paytm) is trying to consolidate India's e-commerce players.
As reported by FactorDaily earlier, Flipkart is eventually going to be acquired by Alibaba and merged into Paytm.
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Amazon in talks to acquire BigBasket?
Before news of Paytm Mall acquiring major stakes in BigBasket surfaced, Amazon was purportedly in preliminary talks to buy the largest e-grocery site.
Speculations of Amazon acquiring BigBasket were rife, but it was rubbished by the latter.
Why is BigBasket a lucrative option?
BigBasket has raised over $290 million in eight rounds of funding and is said to be seeking valuation of $1 billion. Paytm's interest in BigBasket is evident since it will get to own over 25% of $1 billion company if it acquires stake in it.
E-commerce war: Who will emerge as winner, Alibaba or Amazon?
Grocery seems to be the new favourite of the e-commerce players. Paytm Mall backed by Alibaba will be directly competing with Amazon, which is now moving into the grocery space.
Reportedly, Amazon had applied to the government for starting its inventory-led Amazon Fresh in India.
It was also reported that Amazon had earlier signed on a 60-day exclusivity agreement with BigBasket.
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