Tatas buys BigBasket Stake; Prepares to take on Amazon, Flipkart
MUMBAI - Tata Group has acquired a majority stake in online grocery seller BigBasket for an undisclosed sum of money, pitting it against the likes of billionaire Mukesh Ambani’s Reliance and Amazon.
The stake was bought by Tata Digital Ltd, a unit of Tata Sons, a joint statement by the two firms said. It neither disclosed the quantum of stake bought nor the deal size.
In March, Competition Commission of India (CCI) had approved the acquisition of up to a 54.3% stake in BigBasket by Tata Digital.
It was previously reported that Tatas were in talks to buy close to an 80% stake in the online grocery seller, which is backed by Alibaba Group, for $1.3-1.6 billion.
The deal will pit the salt-to-software conglomerate against Ambani’s JioMart, Amazon and Walmart’s Flipkart for a pie of the online grocery business that has grown exponentially during the pandemic.
About half of India’s $1-trillion retail market comprises grocery sales. The online grocery market is expected to reach $4.3 billion in 2021 from $2.9 billion in the previous year.
Tata Digital Ltd — a 100% subsidiary of Tata Sons — has acquired a majority stake in Supermarket Grocery Supplies (which operates BigBasket), the statement said.
“Grocery is one of the largest components of an individual’s consumption basket in India, and BigBasket as India’s largest e-grocery player, fits in perfectly with our vision of creating a large consumer digital ecosystem,” Pratik Pal, CEO of Tata Digital, said.
About half of India’s $1-trillion retail market comprises grocery sales. The online grocery market is expected to reach $4.3 billion in 2021 from $2.9 billion in the previous year.
E-grocery has been one of the fastest-growing segments in the consumer e-commerce space and its growth has been propelled further with India’s rising digital penetration.
“We are extremely excited about our future as a part of the Tata Group. As a part of the Tata ecosystem we would be able to build stronger consumer connect and accelerate our journey,” Hari Menon, CEO of BigBasket, said. — PTI