38.6c New Delhi, India, Monday, June 24, 2024
Business

Tata Digital to acquire 64.3% stake in BigBasket's Supermarket Grocery Supplies

By Snehal Khemka      19 March, 2021 02:50 PM      0 Comments
Tata Digital to acquire 64.3% stake in BigBasket's Supermarket Grocery Supplies

Tata Sons has approached the Competition Commission of India (CCI) to pick up a majority stake in online grocery delivery platform BigBasket. The salt-to-software conglomerate intends to acquire the stake through its wholly-owned subsidiary Tata Digital and is looking to acquire up to 64.3 percent stake in online grocery startup, BigBasket's B2B entity Supermarket Grocery Supplies. 

 

The proposed transaction entails BigBasket's B2B arm acquiring sole control of B2C arm - Innovative Retail Concepts Private Limited. Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and Amazon's Fresh service as more consumers stay indoors and choose to shop online amid the COVID-19 pandemic, therefore witnessing manifold growth in the competitive online grocery retail market. The BigBasket management, including CEO Hari Menon will continue under the new ownership, CNBC-TV18 had earlier reported.

 

The Tata Group is set to acquire majority stake in BigBasket through an amalgamation of primary and secondary acquisitions, including complete exits of BigBasket's early backers Alibaba and Abraaj Group, according to sources.

Tata Digital is likely to buy out entire Alibaba stake which stand at 29.1 percent.

The aforementioned acquisition is likely to boost Tata Digital's plan to set up a 'super app' for users to get access to multiple internet services through its platform with the proposed transaction entailing BigBasket's B2B arm acquiring sole control of B2C arm - Innovative Retail Concepts Private Limited. 

 

In its application, Tata Digital said the Proposed Transaction will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, with BigBasket reporting a 36 per cent year-on-year (YoY) increase in its revenue at Rs 3,818 crore during the financial year ended March 31, 2020. The company's expenses rose 31 per cent YoY to Rs 4,411 crore in FY20, The Economic Times reported, quoting documents sourced from business intelligence platform Tofler. Its losses also zoomed 26 per cent to Rs 710 crore during the year.



Share this article:



Leave a feedback about this
TRENDING NEWS


TOP STORIES

historic-moment-all-four-gates-of-puris-jagannath-temple-reopened-after-bjps-landmark-victory-in-odisha
Trending News Updates
Historic Moment: All Four Gates of Puri’s Jagannath Temple Reopened After BJP’s Landmark Victory in Odisha

Historic Moment All Four Gates of Puris Jagannath Temple Reopened After BJPs Landmark Victory in Odisha

18 June, 2024 11:03 AM
education-minister-admits-irregularities-in-neet-ug-centre-nta-to-face-probing-queries-in-sc
Trending Executive
Education Minister admits irregularities in NEET UG; Centre, NTA to face probing queries in SC

Education Minister admits irregularities in NEET UG; Centre, NTA to face SC probe over exam conduct and paper leak allegations, counselling to proceed.

18 June, 2024 12:14 PM
rajasthan-hc-denies-anticipatory-bail-in-land-forgery-case-cites-serious-charges-and-witness-threats
Trending Judiciary
Rajasthan HC denies anticipatory bail in land forgery case, cites serious charges and witness threats [Read Order]

Rajasthan HC rejects anticipatory bail in land forgery case, citing serious charges, witness threats, and the need for a thorough investigation.

18 June, 2024 12:51 PM
jain-community-dresses-up-as-muslims-to-buy-124-goats-saves-them-from-bakrid-slaughter
Trending News Updates
Jain Community dresses up as Muslims to buy 124 Goats , saves them from Bakrid slaughter

Jain community in Delhi raises Rs 15 lakh, dresses as Muslims to buy and rescue 124 goats from Bakrid slaughter, garnering praise and attention.

18 June, 2024 01:19 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email