Udayavni Special

Tata Group to acquire 68% stake in BigBasket for Rs 9,500 crore: Sources


PTI, Feb 17, 2021, 9:46 AM IST

Mumbai: The Tata group is acquiring 68 per cent stake in online grocery platform BigBasket for around Rs 9,500 crore as it bids to expand in the fast-growing e-commerce space in India, according to sources.

The salt-to-software conglomerate, which has been working to gain majority control in the Bengaluru-based startup for months, has finally signed the deal, according to people in the know of the development.

The deal provides an exit route for a host of investors of BigBasket, including Chinese billionaire Jack Ma-controlled Alibaba.

When contacted to confirm the development, Tata group, BigBasket and Alibaba declined to comment.

It is understood that Tata group’s acquisition puts the enterprise value of BigBasket at over Rs 13,500 crore.

The deal comes at a time when online shopping has accelerated in India, especially in the aftermath of COVID-19 pandemic.

The conglomerate has been reported to be working on a ‘super app’ to stamp its presence in the e-commerce space currently dominated by Amazon and Walmart-owned Flipkart, while Reliance Retail is also making heavy inroads in the sector.

In March 2019, BigBasket had raised USD 150 million from Mirae, Alibaba and CDC Group, which placed the Bengaluru-based company in the unicorn club (companies with valuation of USD 1 billion and above).

The company had then said it planned to utilise the proceeds of this fundraising to further penetrate into existing markets with more investments in the first mile, scaling-up of its supply chain and for developing new reseller channels.

Founded in 2011, BigBasket operates in 25 Indian cities. It competes with SoftBank-backed Grofers as well as Amazon India and Flipkart.

According to reports, the top management of BigBasket, including co-founder Hari Menon, may continue with the company for three to four years. However, Menon did not respond when reached out for comments

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Karnataka: Survey states 63% of toilets in govt schools unfit for use

PM says India needs food processing revolution through PPP mode

Simplify inter-state tariffs to promote domestic tourism: Ker Governor

Varanasi: The holiest city with a death hotel

Priyanka begins 2-day Assam visit by offering prayers at Kamakhya

Massive redevelopment of SHs planned says DyCM Govind Karjol

14 missions lined up for launch in 2021 says ISRO Chairman



Related Articles More

Escorts tractor sales up 30.6 pc at 11,230 units in Feb

Sensex surges over 500 pts in early trade; Nifty tops 14,680

PM Modi to inaugurate Maritime India Summit on March 2

Govt extends due date for filing FY20 GST annual returns till March 31

IKEA to increase sourcing of toys from India

MUST WATCH

Chikmagalur: Locals apprehend dacoits after cinematic chase

I request BJP senior leaders not to trust HD Kumaraswamy and BJP must not form an alliance with the JDS: C P Yogeshwar

Problem! in Cowin App

Listen to the story by Dr. Gururaj Karjagi on the concept of ‘Joy of Giving’- Part-3

This full-time construction worker makes caps from areca leaves in his spare time

Latest Additions

TN should show the way to India in keeping out BJP, oust CM: Rahul Gandhi

Karnataka: Survey states 63% of toilets in govt schools unfit for use

Miss India Delhi 2019 Mansi Sehgal joins AAP

PM says India needs food processing revolution through PPP mode

Simplify inter-state tariffs to promote domestic tourism: Ker Governor

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.