India’s online grocery space is headed for disruption, with the entry of Tata Group. The Competition Commission of India (CCI) on April 29 gave the go-ahead to Tata Digital to acquire BigBasket, one of the country’s leading online grocers.
Tata Digital, a wholly-owned subsidiary of Tata Sons, approached the competition watchdog in March to acquire 64.3 percent of Supermarket Grocery Supplies and for sole control over Innovative Retail Concepts, the company that runs BigBasket. The deal is pegged at $1.2 billion, giving BigBasket a post-money valuation of $1.8 billion.
Big boys to slug it out
The deal will not only intensify competition but also give the much-needed impetus to the digital grocery market, which lags segments such as fashion and gadgets in online penetration.