The potential acquisition would mark Alibaba’s largest deal in on-demand grocery delivery, surpassing Meituan’s $717m purchase earlier this year.
Alibaba is negotiating to acquire Chinese on-demand grocery platform Pupu for a reported $1.5bn, according to sources familiar with the discussions. The deal would value Pupu significantly above Meituan’s $717m purchase of Dingdong Maicai in February, reflecting competition in the sector.
Pupu, founded in 2016, operates a direct-sales model with a focus on fresh produce and 30-minute delivery. Its logistics infrastructure and supply chain efficiency have drawn interest from multiple bidders, though JD.com and Meituan have denied involvement.
The talks remain ongoing, with no immediate pressure to finalize the deal given Pupu’s financial stability. Alibaba’s bid was first reported by Bloomberg last week, highlighting its push to expand in China’s fast-growing grocery delivery market.