Tata Group To Buy Majority Stake In BigBasket For $1.31 Bn
According to media reports, Tata group is in the final stages of buying 68 per cent in BigBasket
Indian conglomerate Tata group is reportedly in talks to buy a majority stake in leading online grocery startup, BigBasket. It is believed that the strategic investment by Tata is a step closer to its ambitious plan of a ‘super app’ in the e-commerce space and lock horns directly with Amazon, Walmart-owned Flipkart and Udaan.
According to media reports, Tata group is in the final stage of buying a majority stake of 68 per cent in BigBasket for $1.31 billion (INR 9,500 crore). It is anticipated that the deal will value the company at $1.85 billion (INR 13,500 crore) and allow the exit of its existing investors such as Alibaba, Abraaj Group and IFC. The strategic move comes almost two years after BigBasket achieved the Unicorn tag, a startup with a valuation of at least $1 billion.
As a part of the deal, chief executive officer and co-founder of BigBasket Hari Menon will continue to stay on the startup’s board and will gradually exist in 4-5 years.
The online e-commerce, which was already gaining popularity, due to its wide range of inventory has been riding high since the past year in the aftermath of the pandemic. During the lockdown, services such as BigBasket, Amazon, Flipkart and Udaan, among others, saw a significant rise in their customer base as people were forced to stay indoors.
According to a RedSeer and BigBasket report, the total size of the e-grocery market in the country is expected to grow from $1.9 billion in 2019 to $3 billion by the end of 2020. At an annual growth rate of 57 per cent, it is expected to touch $18 billion by 2024.