Tata Group is in the process of acquiring a majority stake of 68 per cent in Supermarket Grocery Supplies, which runs and operates online grocery brand BigBasket. Sources believe that the deal is worth Rs 9,300-9,500 crore.
Being one the biggest deals in the online grocery space so far, it will result in valuation of BigBasket at Rs 13,500 crore (around $1.85 billion). This comes about 20 months after the Hari Menon-led Bengaluru company had entered the unicorn club.
According to a report by CNBC TV18, the deal was finalized 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.
The parties are awaiting approval from the Competition Commission of India (CCI). The top management, including co-founder and CEO Hari Menon, will continue to stay on board, said the source. The acquisition of BigBasket fits the Tata Group’s plans for serious online play. Tata Sons Chairman N Chandrasekaran has in the recent past talked about the group’s ambitions to have a super app.
“BigBasket has created a significant presence in the online space that has got certified further in the past 12 months. For Tatas to make a transition from a physical to a digital space, an inorganic route makes more sense,” said analyst and chief executive of Third Eyesight Devangshu Dutta to Business Standard. This transaction would allow the conglomerate access to a large customer base.
