Amazon Considers Inorganic Growth in India

After buying Whole Foods in the United States, Amazon is targeting groceres in India. Bangalore, India-based BigBasket, a five-year-old e-grocer, has signed a 60 day exclusivity agreement with Amazon India  during which time Amazon will conduct a due diligence on the company’s assets with a view to acquisition

Valued at $450 million since its last round of funding, BigBasket’s asking price of  $700 million stalled the transaction, reports ET Retail. A final value will be decided once the inquiry is completed successfully. It is uncertain whether Amazon will go ahead with the final deal and so BigBasket is also on the lookout for fresh capital.

BigBasket Logo

Acquiring BigBasket, which has created a supply chain and back end infrastructure, will add to Amazon’s e-commerce growth; it will also enable Amazon’s entry into the hugely untapped grocery and food market in India. Technopak pegs the grocery and food market in India at $400 billion of which organized retail contributes $12 billion to the industry, while online e-grocers have a 4% share, its report said, outlining viable prospects for the players.

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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