The Tata Group will likely acquire a majority stake in the Indian online grocery company BigBasket and the deal could be closed by the end of the month, sources said.
China’s Alibaba holds 29% stake in BigBasket. Tata Group is likely to buy an entire 29.1% stake, as well as the stakes of some other investors. The other major investors, according to data by Traxcn are Abraaj Group (16.3 percent), Ascent Capital (8.6 percent), Helion Venture Partners (7 percent), Bessemer Venture Partners (6.2 percent), Mirae Asset Naver Asia (5 percent), International Finance Corporation (4.1 percent), Sands Capital (4 percent), and CDC Group (3.5 percent).
BigBasket is among the largest e-grocers in the country, with nearly 3 lakh orders per day, according to data by Forrester. BigBasket’s valuation as of March 2020 was $1.23 billion, and according to company research platform Tofler, the company clocked FY19 revenues of Rs 5,200 crore and a loss of around Rs 920 crore.
Industry watchers see the move as part of the Tata Group’s strategy to build a super app. The Tata Group’s internal M&A team is working on the deal, sources said. This super app will tie in all its consumer businesses, several media reports have said, as it competes against Amazon and Reliance Industries, who have made big bets on India’s booming e-commerce market.