Tatas in talks to buy 80% of BigBasket in e-commerce push: report
08 December 2020
Tata Group is reported to be in advanced talks to acquire up to 80 per cent stake in BigBasket in a deal that values the online grocer at about Rs11,800 crore (about $1.6 billion), as the salt-to information technology conglomerate looks to expand into e-commerce in a big way.
Tatas are in talks with Alibaba-backed Innovative Retail Concepts Pvt, which operated BigBasket.com on the extent to which the acquisition can go.
A report in the Mint newspaper had said that Tatas may buy close to 80 per cent stake in BigBasket for around Rs9,600 crore (about $1.3 billion). Citing sources, the report said Chinese giant Alibaba was likely to offload its entire stake in BigBasket.
The Tata Group’s entry in the e-commers business in a big way could aggravate competition for market share in sector with players like Amazon and Flipkart pitted against local giant Reliance in acquisition wars to narrow the gap with its rivals.
Online retail business in India has been growing at an exponential rate, especially during the pandemic that curbed movement of people and restricted functioning of kirana stores.
Grocery has big potential in India’s $1 trillion retail market that continues to expand.