The Economic Times
English EditionEnglish Editionहिन्दी
| E-Paper
Search
+

    Tata Group is reportedly nearing a deal to buy BigBasket in a grocery coup

    Synopsis

    Mumbai-based Tata Group, with a combined revenue of about $113 billion and marquee brands such as Jaguar Land Rover and tea maker Tetley, is scouting for local e-commerce assets at a time when the race for Indian online shoppers is heating up.

    ETtech
    Rahul Awasthi
    The Tata Group is in advanced talks to buy as much as 80% of BigBasket in a deal that is likely to value the local online grocer backed by Alibaba Group Holding Ltd. at about $1.6 billion, a person familiar with the matter said.

    The conglomerate is now negotiating how much stake it would purchase in Innovative Retail Concepts Pvt., which is commonly known as BigBasket.com, the person said, asking not to be identified discussing details of private talks. Mint newspaper reported earlier that Tata may buy close to 80% for $1.3 billion.

    A spokeswoman for Tata declined to comment, while BigBasket didn’t respond to requests for comment.

    Mumbai-based Tata Group, with a combined revenue of about $113 billion and marquee brands such as Jaguar Land Rover and tea maker Tetley, is scouting for local e-commerce assets at a time when the race for Indian online shoppers is heating up. While billionaire Mukesh Ambani’s JioMart is seeking to shake up the industry dominated by the local units of Amazon.com Inc. and Walmart Inc., Tata is seeking potential acquisitions to narrow the gap with its rivals.

    Online grocery in India has been growing at a rocketing pace during the pandemic, but the field is still wide open as none of the players has yet made a dent. About half of India’s $1 trillion retail market comprises grocery sales and there is huge potential for growth.

    The pandemic is shortening timelines for building in-house capabilities and for Tata, Walmart’s $16 billion acquisition of Indian online retailer, Flipkart, in the summer of 2018, could serve as a playbook. Flipkart is now head to head with Amazon in the India market.

    Mint reported that Chinese giant Alibaba was likely to dispose of its entire stake in the deal. Alibaba representatives declined to comment.
    (Catch all the Business News, Breaking News Events and Latest News Updates on The Economic Times.)

    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    17 Comments on this Story

    Kumar Jagtiani45 days ago
    Tatas are bound to mess it up if they get into Big Basket. It probably the best online grocery store today.
    raaj till45 days ago
    loooks Tata group has become basket candidate
    Valerian Pereira45 days ago
    Tatas:
    should take over
    Revolutionize:
    be the best..service oriented.
    Better than AMAZON.
    best quality
    best in every aspect.
    Wish the TATAS the very best to be a aGreat Player on world scene.too...
    yes, they can.
    Read before you invest. Insights on Reliance Industries Ltd.. Explore Now
    The Economic Times