Tata Digital on Friday acquired a majority stake in online grocery seller BigBasket's B2B arm Supermarket Grocery Supplies, putting the multinational conglomerate, Tata Sons, in a direct race with the likes of Amazon and Walmart's Flipkart.
The Competition Commission of India had approved this deal in March, nodding to the acquisition of a 64.3 percent stake in BigBasket by Tata Digital. Reportedly, the deal is worth about $1.31 billion and will involve buying out Chinese giant Alibaba's stake.
The proposed transaction entails BigBasket's B2B arm acquiring sole control of B2C arm - Innovative Retail Concepts Private Limited.
The BigBasket management, including CEO Hari Menon will continue under the new ownership, CNBC-TV18 had earlier reported.
The deal comes as e-commerce sales, especially of food and groceries, have accelerated in India as the COVID-19 pandemic spurred a big shift to online shopping.
BigBasket was founded in 2011 and has expanded in 25+ cities since then. It is among the largest e-grocers in the country, serving nearly 3 orders per day, data from Forrester said.
Pratik Pal, CEO of Tata Digital 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.”
Tata, which has interests in products spanning from salt to luxury cars to software, is building a consumer ecosystem addressing consumer needs across categories. It has also been planning to launch a "Super App" that will tie those businesses. Walmart is in talks with the group for a large stake of $25 billion in the venture.
(Edited by : Yashi Gupta)
First Published: IST