Tata Group eyes minority stake in BigBasket: Reports
Tata group, Temasek and Generation Investment Management are reportedly in advanced talks with BigBasket.
October 14, 2020 / 03:34 PM IST
Salt-to-technology conglomerate Tata Group is in talks to purchase a minority stake in Alibaba-backed e-grocer BigBasket, media reports have said.
"Tata group, Temasek and Generation Investment Management are in advanced talks with BigBasket. The deal size is around $200 million, which will be entirely primary capital to boost the company’s growth," a source told Mint.
Spokespersons for Tata, Temasek, Generation Investment Management and BigBasket could not be immediately reached for comments, Mint said.
BigBasket has seen its business grow due to the coronavirus pandemic and lockdown, with more customers now preferring to shop online, a source told the publication.
In a separate report, the London-based Financial Times suggested that Tata Group could acquire a 20 percent stake and two board seats in BigBasket.
Moneycontrol could not independently verify the two reports.
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.
The companies could finalise the deal by the end of October, the report added.
Tata Sons Chairman N Chandrasekaran told the publication in August that the conglomerate was planning a "super-app" to consolidate its consumer brands.
According to consultancy RedSeer, India's online grocery market might expand from $1.9 billion in 2019 to $3 billion by the end of 2020 and to $18.2 billion by 2024.