Tata Digital acquires majority stake in BigBasket

By: |
May 29, 2021 6:00 AM

The transaction valued at about $1.2 billion is estimated to give BigBasket a post-money valuation of close to $2 billion.

Even households that historically subscribed to neighbourhood stores or kiranas for monthly grocery purchases and top-ups have embraced the digital mode.

Tata Digital on Friday announced the acquisition of a majority stake in BigBasket. Though the company did not disclose details of the transaction, filings with the Competition Commission of India earlier showed that Tata Digital has acquired about 64.3% of the total share capital of Supermarket Grocery Supplies, the business-to-business vertical of the e-grocer, through a combination of primary and secondary acquisitions.

The transaction valued at about $1.2 billion is estimated to give BigBasket a post-money valuation of close to $2 billion.

“Grocery is one of the largest components of an individual’s consumption basket in India, and BigBasket, as India’s largest e-grocery player, fits in perfectly with our vision of creating a large consumer digital ecosystem,” Pratik Pal, CEO of Tata Digital, said in a statement.

The deal sets the pitch for the Tatas’ super app play. A super app is a service through which a company brings all its consumer offerings on a single platform. The conglomerate’s entry into the digital fold will intensify competition in the e-commerce space that already has Flipkart, Amazon and Reliance jostling for a bigger share of the market.

While the deal has been in the works for some time, the timing could not have been more opportune. The pandemic has significantly altered consumer behaviour and nudged many more Indians to shop online. Consumers are increasingly banking on online platforms to buy all sorts of products — from apparel and fashion accessories to electronics and medicines.

Even households that historically subscribed to neighbourhood stores or kiranas for monthly grocery purchases and top-ups have embraced the digital mode.

Founded in 2011, the Bengaluru-based BigBasket has expanded its presence to over 25 cities across India. “In the e-grocery space, the company provides one of the largest assortments (more than 50,000 SKUs) and provides customers the convenience of home deliveries on preferred dates and time slots,” Tata Digital said.

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