The Tata Group has acquired a majority stake in online grocery retailer, BigBasket, media reports said.
On Tuesday, ET Now reported that the deal will give the Tata Group a 68% stake in the company for $1.3 billion (Rs 9,500 crore). The deal values the startup unicorn at $1.8 billion or Rs 13,500 crore according to the report.
The deal is expected to create an exit for BigBasket’s largest shareholder and Chinese internet company, Alibaba E-commerce Pvt Ltd which held a 16.45% stake in the company for the financial year ending March 31, 2020, as well as Abraaj Group, which held a 15.02% stake during the period.
BigBasket was valued at $1.2 billion in October 2019 according to an auditor’s report when it acquired hyperlocal grocery delivery platform, DailyNinja. It competes with the likes of Reliance backed Jio Mart as well as Flipkart and Amazon’s fresh produce delivery services.
The report said that the founding team at Bigbasket including CEO Hari Menon will continue to stay on at the company to run its operations.
The company which reported losses of Rs 709 crore for the financial year 2019-20 is the first acquisition in Tata Group’s plan to create a digital consumer business as part of creating a super app. Reports have also suggested that Tata Group is in talks to acquire a majority stake in e-pharmacy player, 1MG.