India's online grocery delivery service BigBasket and smaller rival Grofers India Pvt. Ltd. have begun talks on a possible merger, Indian newspaper Mint reported on Wednesday, citing sources.
If the merger goes through, SoftBank Group (9984.T), which is an existing investor in Grofers', will participate in a $60 million to $100 million funding round in the merged company, the report added. (bit.ly/2o1FBzz)
The talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 million to $200 million, Mint added.
Online grocery sales are a fast growing segment in India's e-commerce industry as more consumers log in to internet for their purchases.
(Reporting by Samantha Kareen Nair in Bengaluru; Editing by Euan Rocha)