Business in the online industry is booming to higher extent, many investors are coming up to take the opportunity establishing online businesses to pr
Business in the online industry is booming to higher extent, many investors are coming up to take the opportunity establishing online businesses to provide a vast variety of products and services. The current reports indicate that India’s digital payment firm Paytm could considering teaming up with the Giant Alibaba to invest in a $200 million input into India’s number one online grocery store, the Bigbasket. This investment will ensure increase in the grocery supplies to India.
These companies have been in operation for quite a long time providing exclusive grocery products in their respective countries conveniently and reliably. A report said that the two fintech firms are in a 2-month exclusive talk with the grocery store to decide whether they could invest separately or together.
Franchise India survey indicates that India’s online food market is around to be worth less than $100 million currently, but it will to rise cross $25 billion within the coming years probably by 2020. These are promising figures for the market industry. These investment from the fintech Paytm would extensively increase its place in the e-commerce industry. Alibaba could strengthen its position against U.S. based competitor, the Amazon.
The Market is Promising that Amazon has Shown Interest with bigger prospects of increasing profits to higher margins, other significant players that have been reported to be interested in Bigbasket firm and right now are holding talks, is the Amazon. A report from the Amazon representative, they said that they have the government approval for food supply based on their recent application. He said that they are happy by the governments continued efforts to call the FDI in India to ensureba steady supply of food chain that guarantees steady food supply.
One of the news agencies reported that on June, the Amazon had held preliminary talks to purchase the Bigbasket but the spokesman denied the reports on behalf of the Amazon. It is evident that India is becoming an eye for business prospects due to its large population and a promising development growth as Jeff Bezos, who is the Amazon CEO, had pledged to spend $5 billion investing in India over the coming few years in a bid to compete with the local rivals.
The news agency, Economic Times reported that Amazon was determined to secure the deal. During the period, it was claimed that Amazon had secured the Whole Foods in a $42 each share, a deal that valued at $13.7 billion, a reports from CNBC. It was initially expected the deal would be attained of 2017. But the latest reports that the deal failed after some concerned groups raised trust issues. Whole Foods reported that the deal take up to May 2018 before is closure.
Alibaba and Paytm Alliance Prospects
Collaboration between these two major fintech firms will help them compete against the likes of Amazon, which is said to be planning on investing over $500 million in food distributing in India.Bigbasket, received a $150 million boost for investment in March this year to increase its services into new India cities. The company serves more than five million customers and more than one million orders are processed every month, and currently claims to offer over around 20,000 products from more than 1,000 different brands.
India is is a promising economy and let us see how this merge will fair and play a vital role in the economy boost.