Alibaba Goup setup $300 million for BigBasket

Alibaba Goup setup US$300 million for to become India's largest food retailer. Bigbasket founder and CEO Hari Menon said the investment came at a US$950 million valuation of the company in which Abraaj Group and Bessemer Venture Partners participated in the last round.

Alibaba Group Holding Ltd led a US$300 million investment to online wholesalers based in Bengaluru, BigBasket, to build a network of farmers, warehouses and delivery infrastructure deeper into more than two dozen cities currently in operation.

Tinuku Alibaba Goup setup $300 million for BigBasket

"We want a strategic investor and look at Alibaba as the best," Menon said.

BigBasket was founded in December 2011 by Menon and four other founders to sell fresh vegetables, spices mixes and other foods. Startup has attracted interest from the company widely and the initial investment discussion by Amazon and Walmart.

Menon said the Indian retail market is worth more than US$900 billion and groceries spending around US$600 billion. Major rivals BigBasket in leading online retailers in India include Flipkart headquartered in Bengaluru, Grofers headquartered in Gurugram and Amazon India.

Grocery business is a challenging e-commerce segment worldwide and BigBasket operates in a country where expansion is hampered by immature logistics, lack of trucks and refrigerated warehouses. Some high-end grocery products like PepperTap and LocalBanya-have collapsed in recent years in India.