India's online grocery delivery service BigBasket and smaller rival Grofers India Pvt. Ltd. have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources.
If the merger goes through, SoftBank Group, which is an existing investor in Grofers', will participate in a $60 million to $100 million (roughly Rs. 388 crores - Rs. 645 crores) funding round in the merged company, the report added.
The talks, which are in early stages, may value BigBasket at about $700 million to $800 million (roughly Rs. 4,518 crores to Rs. 5,163 crores), while Grofers could be valued at $150 to $200 million (roughly Rs. 969 crores to Rs. 1,291 crores), Mint added.
"The team at Grofers is focused on executing on our long-term strategy and we are well capitalized for that with an investor set that supports the vision. We don't need to make any strategic moves at this time," the report quoted Alibinder Dhindsa, founder and chief executive of Grofers, as saying.
Online grocery sales are a fast growing segment in India's e-commerce industry as more consumers log in to internet for their purchases.
© Thomson Reuters 2017