India: Grocery delivery startups BigBasket, Grofers revive merger talks

Photo by Fikri Rasyid on Unsplash

Grocery startups BigBasket and Grofers have revived talks for a merger as their investors Alibaba Group Holding Ltd and SoftBank Group Corp. look to join hands, ahead of a costly market share battle with Amazon and Walmart Inc.-owned Flipkart to dominate India’s online grocery market, three people familiar with the development said. The proposed deal involves BigBasket acquiring its smaller rival, the people said on condition of anonymity.

If the deal goes through, the merged entity could raise $250 million from China’s Alibaba Group Holding Ltd, one of the three people said. Japan’s SoftBank Group Corp. and other investors could pour more capital into that entity, the other two people said.

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