Indian conglomerate Tata group will buy a 68 percent stake in online grocery startup BigBasket for Rs 9,100-Rs 9,200 crores, CNBC TV18 reported on February 16.
According to the news channel, the deal was finalized this month. The Alibaba and Abraaj groups, which are currently stakeholders in BigBasket, would exit the brand after acquiring a majority stake by Tata, the report added.
Tāta group is waiting for the Competition Commission of India’s (CCI) approval of the deal.
The company, along with BigBasket, refused to comment on the deal on the 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 is 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 Alibaba currently backs, 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.