Alibaba Group Holding Ltd. (NYSE: BABA) plans to invest $200 million in the India’s largest online grocer Bigbasket, according to Bloomberg.
Bigbasket raised $280 million in the latest funding round. The deal will give Bigbasket a valuation of $800 million. Under the deal, Alibaba will take a 25 percent stake in the India online grocer, Bloomberg reports, citing sources familiar with the negotiations.
Alibaba’s move shows its interest to enter the global e-commerce and grocery market. India is one of the fastest-growing countries in the world. However, China’s e-commerce giant will face competitions in India. Many other companies have also been investing heavily in India. These companies include Alibaba’s rivals, U.S. e-commerce giant Amazon.com Inc. (NASDAQ: AMZN) and China’s tech giant Tencent Holdings Ltd. (OTC: TCEHY).
According to Bloomberg, Amazon Chief Executive Officer Jeff Bezos has vowed to invest $5 billion to compete with local e-commerce leader Flipkart.
Tencent also invested in the Flipkart and ride-hailing company Ola in India.
The Alibaba-Bigbasket deal is awaiting approval from the country’s antitrust authority, the Competition Commission of India, the people said.