Wednesday, June 23, 2021

Tata says acquired majority stake in online grocery BigBasket

The Tata-BigBasket deal, whose financial details weren’t disclosed, puts Tata Digital in direct competition with e-commerce players Amazon, Walmart-Flipkart and Reliance Jio Mart.

Tata Digital said it has acquired a majority stake in online grocery BigBasket, in a deal that pits India’s largest conglomerate against entrenched e-commerce players in the country.

While the digital unit of the salt-to-software group didn’t disclose financial details of the Tata-BigBasket deal, regulatory filings showed that it has acquired around 64% stake in Supermarket Grocery Supplies—the business-to-business entity of the online grocer.

On May 28, the deal was approved by BigBasket’s board earlier this week and that Tata Digital has infused primary capital of $200 million in the hyperlocal startup at a post-money valuation of $2 billion. Majority shareholders China’s Alibaba Group and Actis LLP have now exited the Bengaluru-based company.

The deal was cleared by the Competition Commission of India (CCI) in late April.

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“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 perfectly with our vision of creating a large consumer digital ecosystem,” Pratik Pal, Chief Executive Officer of Tata Digital said. “We are delighted to welcome BigBasket as a part of Tata Digital.”

Hari Menon, BigBasket’s Co-founder and CEO, said the company was “extremely excited” about its future as part of Tata Group. “As a part of the Tata ecosystem, we would be able to build stronger consumer-connect and accelerate our journey,” he said.

According to the Tata Digital statement, BigBasket has in its decade-long existence expanded its presence to more than 25 cities across India. The e-grocer has one of the largest assortments of more than 50,000 SKUs (stock keeping units) and also operates a farm-to-fork supply chain with over 12,000 farmers and several collection centres across India to deliver fresh fruits and vegetables.

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