Higher margins from global sales, B2B supply to dwarf co’s local business, feels India country head Amit Agarwal
The deal price was expected to be about $200 mn. This has since increased as BigBasket looks to build a bigger war chest to compete with US-based Amazon as well as India’s Flipkart.
If it expands nationally, it may cater to up to 10 million customers who might need its services six to seven times a month.
The deal will see its stake in the company drop to a little over 30% from about 55% now, a person aware of the development said, requesting not to be named.
The investment round is expected to value Smaash at over $100 million, according to sources familiar with the matter.
The share sales in Flipkart and Ola will take the total realisations for Tiger Global, which has invested $2 billion over a decade in India, to nearly $1.5 billion.
"The capital till now has been raised from global institutional investors, with no domestic investors," said one of the sources mentioned above.
The company is targeting to generate as much as a fourth of its overall revenue from that segment by 2020.
"As long as we continue to see investment opportunities, we will continue to invest regardless of what competitors are doing," Jeff Wilke of Amazon said.
Vijay Shekhar Sharma said entry of global companies would bring the needed attention to India’s digital payments market and lead to standardisation of products.
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