After a long discussion, BigBasket associated with Amazon for an agreement of 60 days according to which amid this duration the e-grocer Company cannot engage with any other party for prospective sale.
Amazon will be only buyer of Bigbasket
As per deal, Amazon will be the only strategic rival to buy the BigBasket amid of the period of deal but it doesn’t apply any restriction over the raising of any financial deal from the investors.
Bigbasket can look for other investors
Due diligence requires an audit for potential investment and it is still not clear whether Amazon will close the deal with BigBasket or not. Sources revealed that this has forced the company to search for fresh capital simultaneously.
If deal will become success
This outcome is very important as it comes after months of talks between the two companies . If the deal will go through, it will involve a 100% offer of the five-year-old Bengaluru-based organization established by Hari Menon, Vipul Parekh, V S Sudhakar, Abhinay Choudhari and V S Ramesh who had before begun Fabmart.com and which was sold off to the Aditya Birla group.
Menon is about to put the company at Sixth largest grocery retailer
Menon said that, “This is completely untrue. There aren’t any discussions (with Amazon). On the fund-raise, we will get back to you at the appropriate time”.
He also said that they had make a sale of Rs 1400 crore amid the financial year 2016-17. Additionally, he said that, “This puts us as the sixth largest grocery retailer (including physical grocers led by DMart)”.
BigBasket deal would be almost $700 million
Esteemed at $450 million after its last round of subsidizing, BigBasket has been pushing at a deal cost of around $700 million, which has been a barricade to the exchange closing. Final value will be decided only after the successful completion of diligence.
BigBasket had contacted Morgan Stanley for investment as well
BigBasket was in touch with Morgan Stanley, an investment bank, for raising a fund of $150 million which was supposed to get closed by April. But the funding round never went through and BigBasket went back to Amazon to sign the exclusivity agreement. A resource confirmed that the deal for exclusivity was signed 2 weeks ago between the two companies.