Tata Sons finally acquired a 64.3 percent stake in the popular online grocer BigBasket. The deal will help the conglomerate strengthen its position in India’s fast-growing online grocery market.
Although the price of the deal was not officially announced, reports had previously indicated that the deal would be valued at Rs 9,500. (Photo: Reuters)
Tata Sons has acquired a majority stake in the popular online grocer BigBasket through its subsidiary Tata Digital Limited. The majority stake in BigBasket will help the conglomerate compete against Amazon, Walmarts Flipkart, Reliance’s JioMart, and Softbank-backed Grofers.
A regulatory filing from Tata Digital indicates that the company has acquired just over 64 percent of the shares in Supermarket Grocery Supplies, BigBasket’s business-to-business unit. Neither Tata Sons nor BigBasket have released any further details on the deal yet.
“Groceries are one of the largest components of an individual’s consumer basket in India and BigBasket, as India’s largest e-grocery player, fits in perfectly with our vision of creating a large digital ecosystem for consumers. We are excited to welcome BigBasket as part of Tata Digital, “said Pratik Pal, CEO of Tata Digital.
Hari Menon, co-founder and CEO of BigBasket, said the company is “extremely excited” about the future as part of the Tata Group.
“As part of the Tata ecosystem, we could build stronger consumer connections and accelerate our journey,” added Menon.
The Competition Commission of India (CCI) had earlier approved Tata Digital’s proposal to acquire a 64.3 percent stake in BigBasket.
While the price of the deal wasn’t officially declared, reports had earlier stated the deal would be worth Rs 9,500 crore and will also include the purchase of Alibaba’s stake in BigBasket.
The deal comes at a time when e-commerce sales in India, especially groceries and groceries, have increased due to the ongoing Covid-19 pandemic in India.
Many large conglomerates have been investing in the online grocery space since 2020 to consolidate their position in the growing market.
Tata’s acquisition of BigBasket could be part of the conglomerate’s larger plan to launch a “super app” that will serve as a holistic platform for all consumer businesses.
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