After five months of negotiations, the Tata group is close to striking a deal with BigBasket for around 80 percent stake in exchange for around $1.3 billion. The deal will value India’s largest online grocery store at around $1.6 billion.
Tata group may buy 50-60 percent stake from existing investors, including Chinese giant Alibaba and a few other investors, Livemint reported, citing sources.
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"Tatas will infuse fresh money into BigBasket by buying new shares of about 20-30 percent of BigBasket, which will give Tata group almost 80 percent in BigBasket. The deal is likely to be formally announced in the next few weeks," a source told the newspaper.
Interestingly, Tata Sons Chairman N Chandrasekaran had earlier said that the conglomerate was planning a "super-app" to consolidate its consumer brands.
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"The deal will also help the Tata group in conceptualizing its proposed ‘Super App’ by adding a wide range of household items and grocery products from BigBasket," another person told the publication.
"The ‘super-app’ would offer services such as food and grocery, fashion, electronics, insurance, financial services, education, healthcare and bill payments," Chandrasekaran had said at the company’s annual meeting this year.
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A Tata group spokesperson declined to comment, while emails and text messages sent to BigBasket founder Hari Menon remained unanswered, the report said.
Moneycontrol could not independently verify the report.
In 2019, BigBasket raised $150 million at a valuation of $1.2 billion in a financing round that included Mirae Asset-Naver Asia Growth Fund, CDC Group and Alibaba.