Tata Group (1) is looking to acquire a 20% stake in online grocery startup BigBasket. The aim behind the move is to catch up with Reliance, Amazon, and other conglomerates. Notably, the partnership with BibBasket could help the group to support its digital empire.
The strategic deal between the two can come through by the end of October. Tata group will also acquire two board seats in the unicorn. The development comes when Tata Digital, a digital venture of Tata Group, is working on launching a super app. The team aims to offer a wide range of products and digital services in the retail space via its super app.
The organization is likely to launch the app by the end of December 2020 with Walmart, the US-based retail giant, as an investor. Notably, Walmart is also a rival of Amazon and Reliance and may invest about 20 to 25 billion USD in the company at a 50 to 60 billion USD valuation.
Tata Group to Bolster its Digital-Empire By Partnering BigBasket
Consumers would get a wide range of services with the new app of Tata Group. It includes food and grocery ordering, fashion and lifestyle, consumer electronics, durables, insurance, financial services, education, bill payments, and healthcare.
BigBasket, a Bangalore-based online grocery platform, currently operates in 26 Indian cities. The company turned profitable during the COVID-19 pandemic and expects to generate double revenue to 1 billion USD. by the end of the current financial year in March 2021.
Notably, the competition is fierce for the nascent online grocery market of India. Millions of middle-class families in India tried to order online for the first time during the nationwide coronavirus lockdown earlier this year. Even though only 0.3% of grocery shopping in India is taking place online, the sector’s market size is expected to grow from 1.9 billion USD in 2019 to 18.2 billion USD by 2024.