Tata Group to acquire majority stake in BigBasket for about $1 billion
According to sources, BigBasket is in advanced talks to sell a majority stake for about $1 billion to salt-to-software conglomerate Tata Group.
Tata group has been planning to launch a "super app", one that will tie up with all its consumer businesses, several media reports have said, as it competes against Amazon and Reliance Industries, who have made big bets on India's booming e-commerce market.
BigBasket competes with Walmart Inc-owned Flipkart and Amazon's "Fresh" service as more consumers stay indoors and choose to shop online during the COVID-19 outbreak.
China's Alibaba which holds around 26% stake in BigBasket, is expected to sell its entire shareholding in the company.
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.
It has been reported that Tata Group could pay $500 million-$700 million for a controlling stake in BigBasket. It had earlier said that BigBasket was looking to raise $200 million for a fresh funding round and was in talks with the Tata Group.
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