Tata Group Can Spend Upto Rs 7300 Crore To Buy Stake In Big Basket: Is It Tata Vs Reliance Vs Amazon Now?

The reports are coming in about India’s largest e-grocer BigBasket, who is in the advanced stage of negotiations with the Tata Group to divest a majority stake. 

Deal Between Tata Group And Big Basket

Tata groups, which are also known as the salt-to-software services conglomerate are in advanced stages of talks.

The said deal is still in the stage of evolving and could result in the sale of around 50% stake of the Bengaluru-based company for about $1 billion, according to sources.

Before this, the news of Tata Groups planning to launch a “super app” circulated.

This app is supposed to tie in all its consumer businesses, as mentioned in several media reports.

The establishment is expected to compete with the likes of Amazon and Reliance Industries, who already have deep roots in India’s booming e-commerce market.

The conglomerate is likely to execute the deal through its digital arm — Tata Digital — and that (the investment in BigBasket) “is just step one of several other similar tie-ups and collaborations that the group is looking to strike (in order) to scale its digital presence” said the Tata Group executives.

What Is In Stake?

The said Bengaluru-based BigBasket currently competes with big names like Walmart Inc-owned Flipkart and Amazon’s “Fresh” service as consumers are preferring to stay indoors and choose to shop online during the COVID-19 outbreak.

So far, there is no response from the Tata Group and BigBasket to the Reuters request for comment.

Currently, China’s Alibaba <9988.HK> holds around 26% stake in BigBasket, which is expected to sell its entire shareholding in the company, according to ET.

The sources said, “While the talks have been ongoing for some time, it is still work-in-progress as far as the specifics go. It may eventually not lead to a transaction at all,”.

Apart from this, there was news about the Tata Group, they could pay $500 million-$700 million for a controlling stake in BigBasket as reported by the Mint. 

It seems that BigBasket was looking to raise $200 million for fresh funding round and was in talks with the Tata Group.

According to sources, “This is not an easy deal to pull off with so many investors involved… but there should be some finality to the talks in a couple of weeks,”.