Even though Big Basket is a golden goose for Alibaba, resting on top of its segment, Zomato is said to be facing acute pressure from Swiggy and upstarts UberEats in the food-delivery market.
All in all, Alibaba is likely to reserve resources to support its existing bets. On the other hand, Softbank, which is investing from the $100 billion Vision Fund, is working on a clear strategy to back market-leaders in high-growth markets. Softbank
backed Flipkart, Oyo, Ola, Uber (in the US), Paytm and Grofers, investing a total of $10 billion in India to date. That makes its play substantially larger in India as compared to Alibaba.
has also tasted some success already. While it could not get Ola and Uber to merge in India, which would have lowered losses at the two portfolio firms, Softbank made a cracker on Flipkart, which got acquired by Walmart last year. The Japanese investor made $4 billion on its investment of around $2.5 billion in less than a year of investing.
While in the US, Softbank is taking WeWork, the global office space leasing company, to IPO, in India, Softbank is a big force behind Oyo setting up and buying assets in China, Japan and the US. It is also nearing a deal to invest in eye-wear retailer Lenskart and news
and media company Dailyhunt.
For now, Alibaba is cautious and SoftBank ploughing through, but status quo hardly stands in the start-up ecosystem.