BigBasket in talks with new investors for $400 million as Alibaba looks to trim stake

Online grocery player BigBasket is reportedly in talks to rope in a slew of new investors for a $350-400 million financing round.

The list of prospective shareholders entails Fidelity, Tybourne Capital, Singapore government's Temasek, and US-based Generation partners.

The ongoing deliberations also comprise at least $100-150 million in secondary sale of shares by early investors, The Economic Times reported, citing sources.

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BigBasket's business has gathered momentum amid the coronavirus pandemic as consumers buy groceries and everyday essentials online.

The e-grocer is expected to see its valuation gain around 33 per cent to approximately $2 billion, post the investment.

The sources further told the publication that the "non-binding term sheets are in and the round is likely to close in a month's time" adding that Chinese e-commerce giant Alibaba is not participating in the financing round, which means BigBasket is "looking to diversify its list of investors by getting new backers in."

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Alibaba, which is a major investor in the Bengaluru-based firm with around 28 per cent stake, is not pumping any fresh capital into the e-grocer in the wake of a larger anti-China sentiment and FDI curbs imposed by the government.

Meanwhile, a source also told the publication that Alibaba would be slashing its shareholding in BigBasket to 20 per cent following this financing round.