Lawstreet Journal

Tata Digital to acquire 64.3% stake in BigBasket's Supermarket Grocery Supplies

Lawstreet Journal 19 Mar 2021 8:20pm

Image courtesy: Lawstreet Journal Business Tata Digital to acquire 64.3% stake in BigBasket's Supermarket Grocery Supplies

Tata Sons has approached the Competition Commission of India (CCI) to pick up a majority stake in online grocery delivery platform BigBasket. The salt-to-software conglomerate intends to acquire the stake through its wholly-owned subsidiary Tata Digital and is looking to acquire up to 64.3 percent stake in online grocery startup, BigBasket's B2B entity Supermarket Grocery Supplies. 

 

The proposed transaction entails BigBasket's B2B arm acquiring sole control of B2C arm - Innovative Retail Concepts Private Limited. Bengaluru-based BigBasket competes with Walmart Inc-owned Flipkart and Amazon's Fresh service as more consumers stay indoors and choose to shop online amid the COVID-19 pandemic, therefore witnessing manifold growth in the competitive online grocery retail market. The BigBasket management, including CEO Hari Menon will continue under the new ownership, CNBC-TV18 had earlier reported.

 

The Tata Group is set to acquire majority stake in BigBasket through an amalgamation of primary and secondary acquisitions, including complete exits of BigBasket's early backers Alibaba and Abraaj Group, according to sources.

Tata Digital is likely to buy out entire Alibaba stake which stand at 29.1 percent.

The aforementioned acquisition is likely to boost Tata Digital's plan to set up a 'super app' for users to get access to multiple internet services through its platform with the proposed transaction entailing BigBasket's B2B arm acquiring sole control of B2C arm - Innovative Retail Concepts Private Limited. 

 

In its application, Tata Digital said the Proposed Transaction will not lead to any change in the competitive landscape or cause any appreciable adverse effect on competition in India, with BigBasket reporting… Continue Reading...


Tagged: Tata-Mistry   BigBasket  
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