The Tata Group is in advanced talks to buy as much as
80% of BigBasket in a deal that is likely to value the local
online grocer backed by Alibaba Group Holding Ltd. at about $1.6 billion, a
person familiar with the matter said.
The conglomerate is now negotiating how much stake
it would purchase in Innovative Retail Concepts Pvt., which is commonly known as
BigBasket.com, the person said, asking not to be identified discussing details
of private talks. Mint newspaper reported earlier that Tata may buy close to
80% for $1.3 billion.
A spokeswoman for Tata declined to comment, while
BigBasket didn’t respond to requests for comment.
Mumbai-based Tata Group, with a combined revenue
of about $113 billion and marquee brands such as Jaguar Land Rover and tea
maker Tetley, is scouting for local e-commerce assets at a time when the race
for Indian online shoppers is heating up. While billionaire Mukesh Ambani’s JioMart is seeking to shake up the industry
dominated by the local units of Amazon.com Inc. and Walmart Inc., Tata is seeking
potential acquisitions to narrow the gap with its rivals.
Online grocery in India has been growing at a
rocketing pace during the pandemic, but the field is still wide open as none of
the players has yet made a dent. About half of India’s $1 trillion retail
market comprises grocery sales and there is huge potential for growth.
The pandemic is shortening timelines for building
in-house capabilities and for Tata, Walmart’s $16 billion acquisition of Indian
online retailer, Flipkart, in the summer of 2018, could serve as a playbook.
Flipkart is now head to head with Amazon in the India market.
Mint reported that Chinese giant Alibaba was likely to dispose of
its entire stake in the deal. Alibaba representatives declined to comment.
Sandip Ginodia , CEO
ALTIUS INVESTECH PVT LTD
We deal in over 60 unlisted companies with 15 years of experience
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .
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