In a fresh takeover bid, Tata Digital has announced to acquire a majority stake in online grocery BigBasket. The deal assumes significance as this marks the entry of India's largest conglomerate into a segment already seeing consolidation by established e-commerce players in the country.
While the financial details of the deal are yet to be known, a regulatory filing showed that Tata digital has acquired around 64% stake in Supermarket Grocery Supplies-the business-to-business entity of the online grocer, BigBasket.
According to industry sources, the take-over deal was approved by BigBasket's board earlier this week, and that Tata Digital has infused primary capital of $200 million in the hyperlocal startup at a post-money valuation of $2 billion. Majority shareholders China's Alibaba Group and Actis LLP have now exited the Bengaluru-based company.
“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 perfectly with our vision of creating a large consumer digital ecosystem,” Pratik Pal, chief executive officer of Tata Digital, said in a statement on Friday. “We are delighted to welcome BigBasket as a part of Tata Digital.”
Hari Menon, BigBasket's co-founder, and CEO said the company was “extremely excited” about its future as part of Tata Group. “As a part of the Tata ecosystem, we would be able to build stronger consumer-connect and accelerate our journey,” Menon said in the statement.
According to the Tata Digital statement, BigBasket has in its decade-long existence expanded its presence to more than 25 cities across India. The e-grocer has one of the largest assortments of more than 50,000 SKUs (stock-keeping units) and also operates a farm-to-fork supply chain with over 12,000 farmers and several collection centers across India to deliver fresh fruits and vegetables.