Hari Menon, Co-founder and CEO, BigBasketIndia’s salt to steel conglomerate Tata Group will buy a 68 per cent stake in Alibaba-backed online grocery startup BigBasket for around Rs 9,500 crore ($1.31 billion), ET Now reported.
Tata's stake will translate into an enterprise value of Rs 13,500 crore for BigBasket, the report said.
Tata’s BigBasket acquisition will compete with Reliance’s JioMart, Amazon, Walmart-owned Flipkart as well as other players such as Grofers in India’s online grocery market.
BigBasket is likely to be a key part of the Tata Group’s proposed 'Super App', which is envisaged as one stop stop for all kinds of products and services.
The app is set to be launched in India this year. The app aims to provide its customers with a range of products and services offered by different platforms of Tata Group, including shopping app Tata CLiQ, grocery e-store StarQuick and online electronics platform Croma.
It would eventually include services from food and grocery ordering to fashion, lifestyle, electronics, insurance, financial services, education, healthcare and bill payments. The details about the super app was announced by the Tata Sons chairman N Chandrasekaran recently in a meeting with investors.
The BigBasket deal is expected to give Tata Group an immediate head start against the three of biggest players in India's booming online grocery market - Reliance Industries Limited, Amazon and Walmart-owned Flipkart.
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