BigBasket in talks with Grofers India, to merge their business

India's online grocery delivery service BigBasket and smaller rival Grofers India have begun talks on a possible merger, a source has revealed.

The report said, If the merger goes through, SoftBank Group, which is an existing investor in Grofers', will participate in a $60 million to $100 million funding round in the merged company.

The report also said, the talks, which are in early stages, may value BigBasket at about $700 million to $800 million, while Grofers could be valued at $150 to $200 million.

Online grocery sales are a fast growing segment in India's e-commerce industry as more consumers log in to internet for their purchases.