While we witnessed consolidation happening in various sectors like Telecom, eCommerce, Rental where one company is taking over other, the latest news on merger between Online grocery majors Bigbasket and Grofers has been the talk of the town.
Both the companies which gives fierce competition to each other has attracted investments from Softbank, the Japanese major which invests in technology and startups majorily. It is an irony that both the brands are running in loses with a combined loss value of Rs.500 crore approx, a year and the consolidation may bring in some respite to both the brands which can leverage each other’s network and clients.
Bigbasket held talks with investors such as Wal-Mart Stores Inc, Amazon.com Inc, Tencent Holdings Ltd, and Fosun International Ltd for a fresh round of funds but it did not progress any further. Through ads, discounts etc, it is expected to be burning USD 6 million a month whereas the figures for Grofers is just USD 2 Million and it is well placed financially since it is having cash of around USD50-60 million in bank.