According to reports, Tata group is set to buy a 68% stake in Alibaba-backed online grocery start-upBigBasket for about Rs 9,500 crore.
Tata’s stake will reportedly translate into an enterprise value amounting to Rs 13,500 crore for BigBasket.
The Indian conglomerate’s acquisition of the Bengaluru start-up has resulted in the exit of Alibaba along with a few others.
Data cited by a publication states that Chinese billionaire Jack Ma-controlled Alibaba controls a 27.58 per cent stake in the company.
Currently, Tata group is awaiting the approval of the Competition Commission of India to the deal.
The company aims to establish a beachhead in India’s e-commerce market amid a surge in online sales because of covid.
Moreover, as more consumers stay indoors and choose to shop online during the COVID-19 pandemic, BigBasket competes with Walmart-owned Flipkart.
Further, BigBasket deal could emerge as the potential starting of Tata’s launch of super app which is set to be a tie up with all it’s consumer businesses.
The objective is to bring all consumer products and services on one platform including food, grocery, consumer durables, jewellery, financial services, etc.
With Tata on board, founders of BigBasket will get the necessary firepower to take on Reliance Industries Ltd.
This is because Reliance plans on shaking up the e-commerce market with deep discounts just as it did in telecom.
It has been confirmed that the top management of BigBasket including co-founder Hari Menon, will be staying for a span of three to four years.
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