Tata set to acquire BigBasket to boost its super app
Tata Group has reportedly reached an agreement to acquire a majority stake in online grocery platform BigBasket in order to boost its yet-to-be-launched ‘super app’ play, which will combine the company’s consumer offerings on a single platform.
According to an ET report citing sources, Tata will acquire up to 68% stake in BigBasket for $1.31 bn. Meanwhile, a TechCrunch report noted that the deal is pegged at $1.8 bn to $2 bn, giving near-complete exit to BigBasket’s existing investors, including China-based ecommerce platform Alibaba. As per previous news reports, Tata is expected to buy out Alibaba’s 30% stake in BigBasket.
The super app will pit Tata Group against other digital businesses conglomerates like Reliance Industries, Amazon as well as Flipkart. Over the last year, all these companies have set their eyes on digital monopoly by getting into various segments, including groceries and medicines. While Tata looks to acquire BigBasket to supports its groceries side, it plans to acquire a majority stake in epharmacy startup 1mg to support the online medicine business.