Indian conglomerate Tata Group is in the final stages of acquiring a majority stake of 68 percent in online grocery brand BigBasket, for, about Rs 9,300-9,500 crore, CNBC TV18 reported on February 16.According to the news channel, the deal was finalized this month. The Alibaba and Abraaj groups, which are currently stakeholders in BigBasket, would exit the brand after the acquisition of a majority stake by Tata, the report added.The company is waiting for the Competition Commission of India's (CCI) approval of the deal.
Tata Group, India's salt-to-software conglomerate, has been planning to launch a "super app" that will tie in all its consumer businesses, according to media reports, as it aims to compete with Amazon, Flipkart and Reliance Industries Ltd in India's booming e-commerce market.
"BigBasket has created a significant presence in the online space that has got certified further in the past 12 months. For Tatas to make a transition from a physical to a digital space, an inorganic route makes more sense," said DevangshuDutta, analyst, and chief executive of Third Eyesight.
This upcoming deal will also allow the conglomerate access to amore extensive customer base.Indian retail sector is super competitivedue to reputed firms like Amazon, Flipkart, Reliance Retail, Future Group, etc. Getting a majority stake in BigBasket will help Tata integrate it into its much ambitious Super App, which is due for a public release this year.
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