Indian conglomerate Tata group will buy 68 percent stake in online grocery startup BigBasket for Rs 9,100-Rs 9,200 crore, CNBC TV18 reported on February 16.
According to the news channel, the deal was finalised this month. The Alibaba and Abraaj groups, which are currently stakeholders in BigBasket, would exit the brand after the acquisition of majority stake by Tata, the report added.
T?ta group is waiting for the Competition Commission of India’s (CCI) approval to the deal.
The company, along with BigBasket, refused to comment on the deal on CNBC-TV18 query.
Tata, India’s salt-to-software giant, 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 and Reliance Industries Ltd in India’s booming e-commerce market.
Bengaluru-based BigBasket competes with Walmart-owned 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 13,500 crore for BigBasket, which is currently backed by Alibaba, ET Now reported.
BigBasket’s top management, including co-founder Hari Menon, is likely to stay on for three to four years, according to the report.
Disclaimer: “Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.”
News Source:- Moneycontrol