Tata Group is in advanced talks with BigBasket to buy a majority stake of $1 Billion. As Tata is looking to launch its "Super App" soon, it is aggregating all its products and services and also acquiring new services to give tough competition to Amazon, JioMart, and Flipkart in India.
BigBasket is a Bengaluru-based startup that provides grocery delivery to major cities in India. Also, China's Alibaba, which holds around 26% stake in BigBasket, is expected to sell its entire shareholding in the company.
"While BigBasket's existing investors are not averse to the idea of selling a controlling stake to Tata Group, they also want the current management, led by the founders, to remain at the helm. Investors also want BigBasket to hit the IPO (initial public offering) market by the next calendar year, irrespective of Tata's coming on board," said a source close to the company.
Tata Group is looking to launch its Super App as soon as possible to acquire a controlling stake in the Indian e-commerce market, which has already attracted the interest of Amazon, Flipkart, and the new entrant JioMart. Apart from the Tata Group, private equity funds Temasek and Generation Investment Management were also in discussions to invest in BigBasket.
The lockdown period has been profitable for the e-commerce sector, as more and more people are switching over to online ordering of food and groceries. BigBasket, which recently became a unicorn, has a market share of more than 50% in the online grocery market. Its revenue grew to a massive 70% to ₹3,200 crores in FY19.
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