Competition Commission of India has now approved Chinese e-commerce giant Alibaba’s stake purchase in the online grocery store BigBasket. The approval came a week and has reported that Alibaba is planning to buy over a third of BigBasket in a deal pegged at over $300 million.

Alibaba Squares up Against Amazon

Alibaba’s investment in BigBasket will add to a portfolio of strategic investments the Chinese e-commerce giant is building in India as it squares up against Amazon in one of the most dynamic markets for e-commerce.

The speculation will enable BigBasket to additionally concrete its position as the market pioneer in the staple section while permitting Paytm Mall to get a critical foot in this market. Paytm Mall is also planning to invest in BigBasket as a part of the deal.

Online Grocery Segment to Witness Growth

BigBasket has operations in various cities of India like Bengaluru, Hyderabad, Pune, Mumbai, Chennai, Delhi-NCR, Ahmedabad, Patna, Kolkata, Jaipur, Vijayawada, Indore, Punjab and Lucknow.

With individuals getting to be noticeably open to purchasing even grain and bread on the web, the online grocery segment projected to witness a strong growth throughout the following couple of years in India. As per a report by Franchise India, the online grocery is expected to be Rs270 crore market by 2018-19.