Alibaba is reportedly investing $200 million in an Indian grocer, in a challenge to rival Amazon

• Alibaba is set to invest $200 million in Bigbasket, India's largest online grocer.
• The investment would earn the Chinese e-commerce giant a 25 percent stake in Bigbasket and a foothold in two burgeoning e-commerce markets.
• Bigbasket had previously been in investment talks with Amazon, Bloomberg reports.

is set to invest $200 million in Bigbasket, India's largest online grocer, Bloomberg reports, citing sources familiar with the talks, escalating competition with rival .

The investment would earn the Chinese e-commerce giant a 25 percent stake in Bigbasket and a foothold in two burgeoning e-commerce markets: the nascent Indian e-commerce industry and the online grocery industry.

Amazon CEO Jeff Bezos said earlier this year the company would to challenge local names like Flipkart and Snapdeal, but the American titan has been in the country.

Bigbasket had previously been in investment talks with Amazon, Bloomberg reports, before the online retailer's purchase of Whole Foods in June.

Read the full Bloomberg report here.