The Tata group will acquire 68% stake in online grocery platform BigBasket for about ₹9,500 crore, sources said. The group has signed an agreement, the sources added.
The agreement puts BigBasket’s enterprise value at more than ₹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 $150 million from Mirae, Alibaba and CDC Group, which placed the Bengaluru-based company in the unicorn club (companies with valuation of $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, Mr. Menon did not respond when reached out for comments.