The contest between the e-commerce players has reached to an interesting level. At the present stage, acquisition and merger are the two factors that decide the future of the startup or the company. Both the factors come into action when one company is going through a constant drop or to take over the market position, the acquirer invests in it; in short, to diminish the competition.
Amazon, which is a dominating player in the e-commerce industry, looks like, it is planning to eliminate one of the India’s biggest online grocery shopping platform. Amazon is in talks to buy Big Basket, as per the sources working closely with the matter.
For now, the discussion is in a preliminary stage and the chances of leading towards sale are still moderate. The negotiation deal is confidential. Big Basket operated by SuperMarket Grocery Supplies Pvt, has made its place as a largest online grocery firm and it is functioning in around 25 cities across the country.
However, the spokesperson from Big Basket declined the fact that Amazon is in talks to purchase the firm. Also, a representative from Amazon refused to comment.
Jeff Bezos—Amazon, CEO has promised to invest $5 Billion in India in coming period as an attempt to compete with local rivals. The flourishing business of the Amazon has forced two India-based e-commerce giants; Snapdeal and Flipkart, to come together.
Coming on to the funding rounds, so far, Big Basket received $150 Million in 2016, which was led by Dubai’s Abraaj Group, along with its backers Helion Venture Partners and Bessemer Venture Partners. Later in March, it bagged $7 Million from Trifecta Capital to fortify its delivery network and set up warehouses.
Amazon seeks to expand its services through online grocery and food sales. It has opened drive-in grocery store located in Seattle as an attempt to get into the new part of the business.
“The company’s investment plans in food retailing sector in India, will soon get a positive nod,” says Harsimrat Kaur— food processing minister.
It will be more interesting to see, what strategies other local players will implement to avoid the easy go for Amazon.