TATA TO BUY MAJORITY STAKE IN BIGBASKET FOR $1.3BN: REPORT

BENGALURU: Tata Group will buy a 68% stake in online grocery startup Bigbasket for about ₹9,500 crore ($1.31 billion), television channel ET Now said on Tuesday, citing people familiar with the matter.

The salt-to-software conglomerate has been planning to launch a “super app” that will tie in all its consumer businesses, according to media reports, as it competes against Amazon.com Inc and Reliance Industries Ltd in India’s booming e-commerce market.

Bengaluru-based Bigbasket competes with Walmart Incowned Flipkart and Amazon’s “Fresh” service as more consumers stay indoors and choose to shop online during the Covid-19 pandemic.

Tata’s stake will translate into an enterprise value of ₹13,500 crore for Bigbasket, which is backed by Alibaba, ET Now said.

Bigbasket top management, including co-founder Hari Menon, are likely to stay on for three to four years, according to the report.