Mumbai: Tata Group will buy a 68% stake in online grocery startup BigBasket for about $1.31 bn (Rs 9,500 cr), it was reported on Tuesday, citing sources.
The salt-to-software conglomerate has been planning to launch a super app that will tie in all its consumer businesses, according to media reports, as it competes against Amazon.com Inc and Reliance Industries Ltd in India’s booming e-commerce market.
Bengaluru-based BigBasket competes with Walmart Incowned Flipkart and Amazon’s ‘Fresh’ service as more consumers stay indoors and choose to shop online during the COVID-19 pandemic.
Tata’s stake will translate into an enterprise value of Rs 135 bn for BigBasket, which is backed by Alibaba, it said. BigBasket top management, including co-founder Hari Menon, are likely to stay on for three to four years, as per the report. Tata Group and Big- Basket said they did not want to comment on the matter.