BigBasket's FDI Approval for India Food Retail Business Resurfaces
Resurfacing a August 2017 move, BigBasket received approval for foreign direct investment in food retail on August 3, 2017, a move that could strengthen its grocery expansion and sharpen interest from global players such as Alibaba.
What happened
BigBasket received approval for foreign direct investment in food retail on August 3, 2017, opening discussion over whether Alibaba and Paytm Mall could also
Key facts
- August 3, 2017
Why this matters
The approval makes BigBasket a more actionable partnership or investment target for global retailers seeking a regulated entry point into India’s online grocery market.
What to watch
- Announcement of a new investment by Alibaba, existing investors or another global retailer.
- Changes in BigBasket's foreign shareholding or food-retail operating structure.
- New warehouse, dark-store, cold-chain or city-launch announcements.
- Evidence of expanded private-label assortment and direct sourcing from producers.
- Funding, M&A or grocery-delivery expansion moves by Amazon, Flipkart, Grofers and Reliance.
- Policy clarification or enforcement affecting FDI, inventory ownership, discounting or e-commerce food retail.
- Pursue a large foreign-led funding round or strategic investment transaction.
- Expand fulfillment centers and cold-chain capacity in major metros and selected tier-2 cities.
- Increase private-label food and staples penetration to improve gross margins.
- Use targeted promotions, subscriptions and faster-delivery formats to defend customer acquisition.
- Competitors may accelerate investments, partnerships or acquisitions in online grocery.