Earlier this week, ET reported that Amazon India is planning to acquire online grocery service BigBasket. Now according to TOI, BigBasket has signed a 60-day exclusivity agreement for possible sale to Amazon. As per the agreement, the e-grocer cannot engage with another party for a potential sale.
BigBasket, run by SuperMarket Grocery Supplies Pvt, is India’s largest online grocer and operates in about 25 cities across the country. With over 4 million registered users, the e-grocery platform expects to become profitable by March 2018. BigBasket has so far raised USD 246.75 million from investor such as Bessemer Venture Partners, The Abraaj Group, Helion Venture Partners and others.
Amazon has pumped $5 billion in India for to combat its rivals and gain foothold in the e-commerce market. The company already has Amazon Now grocery delivery service in India that was launched as a pilot in India in 2016. Earlier this week PTI reported that the government will soon clear Amazon’s proposed $500 million investment in food retail in India.