Perhaps it’s speculation, but tweets were appearing from notorious startup insiders that the global giant ecommerce retailer, Amazon, may just be looking at BigBasket, and that it’s possible we may hear about the acquisition right around Valentine’s Day.
BigBasket’s representatives to the media denied it saying, “This is not true.”
Amazon India’s communications team was taken aback to hear about the speculation appearing on Twitter, but responded via mail that “We don't comment on rumours and speculations.”
Sources reveal that the deal is still in process and that Amazon’s internal wiki points to talks that may lead to an acquisition of the online grocery startup.
Amazon uses the platform XWiki SAS for its internal knowledge base building, collaborating on projects and sharing information.
According to ecommerce industry analysts who keep an eye on M&As, it would make sense for such a deal to happen and could only benefit both parties given that valuations and share negotiations happen on mutually favourable grounds.
Especially with Paytm E- commerce, backed by Chinese ecomm giant, Alibaba, set to make its debut it would only make sense for India’s number two ecommerce retailer, Amazon, to strengthen its armour in a battle for the lush Indian market, a battle heating up by the day.
About a month back there were also media reports that BigBasket was pondering a merger with its competition, Grofers.
BigBasket is said to have been in talks with Morgan Stanley about further fund raising, and was awaiting a final result this April. Meanwhile it’s the highest funded grocery startup in India with an estimated 247 million dollars in 7 Rounds from 10 Investors like Abraaj Group, Bessemer Venture Partners, Helion Venture Partners and International Finance Corporation.
The company cofounded by the inspirational Hari Menon has, despite doubling revenue, been guzzling so much money in employee costs and expansion plans, that have given rise to reports that Big Basket’s FY ’16 losses had increased by a staggering 363 percent to rupees 278 crores.
BW Reporters
Regina is a reporter for BW Businessworld. In her previous assignments, she has worked with Independent television Network as a news anchor and reporter in Sri Lanka
