India’s biggest e-grocer BigBasket is in advanced negotiations with Tata Group to relieve a majority stake in favour of the Tatas, according to reliable sources. The deal, which hasn’t been finalized yet, could see BigBasket sell around half of its stake for $1 billion, the sources said.
The Tata Group is planning to launch a “super-app”, a kind that will tie all its customer businesses according to several media reports. The move is to compete with Amazon and Reliance Industries, who have made big claims on India’s booming e-commerce market.
Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and “Fresh” service from Amazon as more and more consumers opt for online mode of buying groceries due to the pandemic. China’s Alibaba, which holds around 26% shares in BigBasket is expected to share all its stake holdings to the company, according to a report by the Economic Times.
The newspaper cited one of the sources saying that the talks have been going out for sometime but the details are not yet clear; there is a possibility that eventually there won’t be any transaction at all.
The Mint also reported on Wednesday that Tata Group could pay between $500-million to $700-million for controlling the stake in BigBasket. The paper had earlier reported that BigBasket was earlier looking to raise $200-million for fresh funding and was in talks with Tata Group.